Asia stocks steady, Treasury prices off highs as risk aversion settles
Asia stocks steady, Treasury prices off highs as risk aversion settles
Asian stocks steadied and U.S. Treasury bond prices fell slightly on Thursday as the risk aversion triggered by the latest flare up of tensions between the United States and North Korea began to settle.
MSCI`s broadest index of Asia-Pacific shares outside Japan stood little changed after dropping 0.6 percent the previous day.
Japan`s Nikkei rose 0.2 percent and Australian shares gained 0.1 percent. South Korea`s KOSPI was little changed.
Asian stocks were supported after seeing Wall Street shares closed barely lower overnight, trimming losses, as investors appeared to brush off geopolitical concerns. [.N]
The flight-to-safety into U.S. Treasuries also abated overnight. The 10-year Treasury note yield us10yt
"U.S. equities managed to cut its losses towards yesterday`s close and while the VIX (volatility index) did pop higher, it still remains at an overall low level. Furthermore, the benchmark Treasury yield also climbed away from lows," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.
"These developments suggest that risk aversion caused by geopolitical tensions in North Asia are temporary in nature, as long as it does not involve military conflict."
Bids into the Japanese yen and Swiss franc, currencies that find demand in times of geopolitical anxiety, also tapered.
The dollar was steady at 110.030 yen jpy
The Swiss currency was little changed against the dollar at 0.9637 franc
The euro was flat at $1.1759 eur
Currency markets focused on the U.S. producer price index data due later in the session. Investors will study the numbers to get a feel for the U.S. inflation trend and any impact they data could have on the Federal Reserve`s monetary policy.The New Zealand dollar was 0.2 percent higher at $0.7354
The RBNZ held rates at a record low of 1.75 percent on Thursday and reiterated that policy would stay loose for a considerable time to come.
In commodities, crude oil stretched gains after rising overnight on data pointing to declining U.S. inventories. [O/R]
Brent crude lcoc1
Gold prices were nudged away from recent highs as broader risk aversion receded somewhat. Spot gold was 0.1 percent lower at $1,275.56 an ounce xau
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.