August 1, 2021

Asia Stocks to Track U.S. Rally as Traders Buy Dip: Markets Wrap

(Bloomberg) — Asian stocks look set to snap three days of losses after bargain hunters drove U.S. equities to the biggest advance since March as anxiety over the economic impact of coronavirus flareups eased. Treasury yields rose.

Futures climbed Wednesday in Japan, Australia and Hong Kong. The S&P 500 almost erased Monday’s slide in a comeback for the reopening trade led by cyclical sectors such as industrials and financials, while a gauge of small caps jumped 3%. U.S. contracts fluctuated in early Asian trading.

A rally in Treasuries paused, sending 10-year yields back above 1.2%. It remains to be seen if the recovery in yields has legs amid lingering concerns about the delta virus variant that led traders to pare back bets on Federal Reserve rate hike.

The dollar edged higher against major peers in U.S. hours, advancing for a fourth day. Oil pared gains and Bitcoin held below the…

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