Asian stock markets moved mixed in today’s trading, Wednesday (13/1/2021) as the US dollar held back weakness and Treasury yields continued to decline as market players weighed interest in bonds and the latest comments from Federal Reserve officials about asset purchases. Based on Bloomberg data, Japan’s Topix and Nikkei 225 indexes closed higher by 0.35 percent and 1.04 percent, respectively, while South Korea’s Kospi index closed up 0.71 percent.
On the other hand, China’s Shanghai Composite index and CSI 300 fell 0.27 percent and 0.33 percent, respectively, while the Hang Seng Index edged down 0.02 percent.
The 10-year US Treasury yield fell to just above 1.10 percent after strong interest in a government auction on Tuesday. Two Fed officials also dismissed speculation that the central bank will soon reduce asset purchases.
Vaccine Boost Economic Recovery
Vaccine launches and the prospect of more US fiscal support have raised expectations for economic recovery. The bond yield curve has been steeper this year as investors bet on additional stimulus spending and increased bond issuance.
At the same time, there are still concerns over possible speculative excesses in the stock market approaching all-time highs amid the pandemic.
“What I think most investors focus on is digesting what has changed fiscal policy,” said DWS Group American investment chief David Bianco, as quoted by Bloomberg.