Tokyo: The dollar extended gains against its main peers and most other currencies Tuesday as rising US bond yields fan speculation of a sharp rise in interest rates, while most of Asia's major markets edged up after recent losses.
While the corporate earnings season is maintaining traders' attention, the release on Friday of US economic growth data is a key marker with a strong reading likely to reinforce opinions that borrowing costs will go up.
An improving economy and expectations that inflation will continue to rise on the back of a oil price rally and Donald Trump's tax cuts have lifted the yield of benchmark 10-year Treasuries close to three percent and near its highest level since 2014.
Higher yields are a signal interest rates could rise and could weigh on markets as traders shift from equities to safer bond investments.
"For us it's more the reasons why we're seeing the move: better growth outlook, a little bit more inflation and faster rate hikes being priced in by the market," Kerry Craig, global market strategist at JPMorgan Asset Management, told Bloomberg TV.
"It should be reaffirming the fact that we see a global economy that's looking relatively healthy."
The dollar rallied on the back of the higher yields, sitting at two-month highs against the yen and seven-week highs against the euro. It was also up against most other high-yielding units, including the Australian dollar, South Korean won, Mexican peso and South African rand.
"Without question (the) US GDP data will be crucial for an extension of the current dollar move as US economic strength in the face of synchronised economic slowdowns in both China and Europe are playing into the resurgent US dollar hand," said Stephen Innes, head of Asia-Pacific trade at OANDA.
The weaker yen boosted Japanese exporters, which helped the Nikkei to end the morning 0.7 percent higher.
Hong Kong added 1.1 percent, Shanghai rose 1.8 percent and Sydney put on 0.4 percent.
The stronger dollar also helped stocks in London, Paris and Frankfurt.
However, Seoul eased 0.2 percent and Singapore was off 0.1 percent. Taipei, Wellington and Manila were also down.
Technology firms staged a mild recovery after recent losses as Apple suffered another sell-off on worries about the key smartphone sector.
And in oil markets, both main contracts built on Monday's gains to hold at peaks not seen since late 2014, with ongoing unrest between Saudi Arabia and Yemen rebels providing support.
Adding to the positive outlook for crude is improving demand in the United States and geopolitical tensions.
Key figures around 0230 GMT
Tokyo - Nikkei 225: 0.7 percent at 22,236.53 (break)
Hong Kong - Hang Seng: UP 1.1 percent at 30,578.40
Shanghai - Composite: UP 1.8 percent at 3,122.25
Euro/dollar: DOWN at USD1.2192 from USD1.2207 at 2100 GMT
Dollar/yen: UP at 108.85 yen from 108.72
Pound/dollar: DOWN at USD1.3923 from USD1.3941
Oil - West Texas Intermediate: UP 13 cents at USD68.77 per barrel
Oil - Brent North Sea: UP 10 cents at USD74.81 per barrel
New York - Dow: DOWN 0.1 percent at 24,448.69 (close)
London - FTSE 100: UP 0.4 percent at 7,398.87 (close) (AFP)
Asian markets rallied on Monday, extending their gains at the end of last week, following another strong US jobs report that reinf…
Shares of Chinese smartphone giant Xiaomi fell almost 6 percent in its trading debut in Hong Kong.
The Jakarta Composite Index (JCI) dropped by 0.77 percent or 44.42 points to 5,694.91 on Friday, July 6, 2018.
The Jakarta Composite Index (JCI) dropped by 0.63 percent or 36.05 points to 5,703.28 brefore break on Friday.
The Jakarta Composite Index (JCI) increased by 0.1 percent or 5.69 points to 5,739.33 on Thursday, July 5, 2018.
Di Singapura banyak dijumpai bangunan bergaya futuristik, bermacam-macam tempat wisata, sekaligus su…
The Indonesian Entrepreneurs Association (Apindo) has warned that a 8.03 percent increase in the provinical minimum wage (UMP) for…
Finance Minister Sri Mulyani Indrawati has encouraged companies and entrepreneurs to apply for tax cuts or tax holidays.
The government collected Rp900.9 trillion in tax revenue as of September 2018, increasing by 16.8 percent compared to the same per…
The Finance Ministry has projected that the budget deficit is estimated to reach around 1.83-2.04 percent this year.
Finance Minister Sri Mulyani Indrawati on Wednesday announced the realization of government spending as of the end of September 20…
Downstream Oil and Gas Regulatory Agency (BPH Migas) Fansurullah head on Wednesday said that the government will continue to devel…
President Joko "Jokowi" Widodo has instructed his cabinet to improve the nation's balance of trade by limiting impor…
Finance Minister Sri Mulyani Indrawati strongly believes that Indonesia's trade balance will recover by the end of 2018.
Indonesia recorded a trade surplus of USD 0.23 billion in September 2018, the Central Statistics Agency (BPS) announced Monday. …
International Monetary Fund managing director Christine Lagarde has praised Indonesia's courage and resilience in the wake of …