Asian stocks looked set to round out a strong quarter with gains on Friday, while the rally in sovereign bonds ebbed as investors gauge the outlook for growth. The dollar steadied after a three-day advance.
The MSCI Asia Pacific Index is heading for an 8.4 percent advance for the quarter, recouping the bulk of the fourth-quarter sell-off. Shares on Friday gained in Japan, South Korea and Australia and futures on U.S. equities edged higher, with sentiment helped by Federal Reserve Bank of St. Louis President James Bullard saying he expects growth to bounce back. Australian bonds tracked modest declines in Treasuries. Meantime, U.S.-China trade talks are set to continue Friday in Beijing, though negotiations may be prolonged.
White House economic adviser Larry Kudlow said the Trump administration is prepared to keep negotiating with Beijing for weeks or even months. Some of the rebound in equities this quarter has been attributed to the improved prospects for an end to the trade war between the world’s two largest economies.
Source : Bloomberg