<div class="header-sections-wrapper"><h2 class="header-sections" style="text-align: center;"><span style="font-size: 10pt;">(Business Today Thursday 16 Februa</span><span style="font-size: 10pt;">ry 2017)</span></h2></div><div class="block block-views even" id="block-views-article-title-block"><div class="view view-article-title view-id-article_title view-display-id-block view-dom-id-a7e955395dc43f6555f813ebf4592f7f"><div class="view-content"><div class="views-row views-row-1 views-row-odd views-row-first views-row-last"><div><span><h1 class="title" id="page-title" style="text-align: center;">Asia stock rally fizzles as bonds gain and yen jumps</h1></span> </div></div></div></div></div><div class="block block-views odd" id="block-views-abbbed293fc232acd042f79d5c8059a0"><div class="view view-article-main-highlight-view view-id-article_main_highlight_view view-display-id-block view-dom-id-28c77406c255f369d7fdeb34655059b8"><div class="view-content"><div class="views-row views-row-1 views-row-odd views-row-first views-row-last" style="text-align: center;"><article class="node-2741581 article node node-article node-promoted view-mode-highlight_article clearfix" about="/business/asia-stock-rally-fizzles-bonds-gain-and-yen-jumps" typeof="sioc:Item foaf:Document"><header><a title="Employees of a foreign exchange trading company in Tokyo. Photo: Reuters file photo" href="http://www.todayonline.com/sites/default/files/styles/photo_gallery_image_lightbox/public/photos/43_images/28820318.JPG?itok=sW1G4YCm" rel="lightbox"><img width="560" height="420" style="clear: none; float: none;" alt="Asia stock rally fizzles as bonds gain and yen jumps" src="https://img1.daumcdn.net/relay/cafe/original/?fname=http%3A%2F%2Fwww.todayonline.com%2Fsites%2Fdefault%2Ffiles%2Fstyles%2Fphoto_gallery_image%2Fpublic%2Fphotos%2F43_images%2F28820318.JPG%3Fitok%3DnDztycgG" typeof="foaf:Image"></a> </header><div id="photo-highlight"><div class="description"><strong> Employees of a foreign exchange trading company in Tokyo. Photo: Reuters file photo</strong> </div></div></article><!-- /.node --> </div></div></div></div><div class="block block-views last even" id="block-views-photo-gallery-view-block"><div class="view view-photo-gallery-view view-id-photo_gallery_view view-display-id-block view-dom-id-e47a5c5bf72fa792c23a8c251f31782d"><div class="view-content"><div class="views-row views-row-1 views-row-odd views-row-first views-row-last"></div></div></div></div><div id="content-main"><div class="inner"><article class="node-2741581 node node-article node-promoted view-mode-full inline clearfix" about="/business/asia-stock-rally-fizzles-bonds-gain-and-yen-jumps" typeof="sioc:Item foaf:Document" data-nid="2741581"><div class="field-name-field-article-abstract"></div><div class="social-links"><p class="whatsapp-share last"><br></p><p class="whatsapp-share last"><a class="wa_btn wa_btn_s" style="margin: 1px; display: none;" href="whatsapp://send/" data-href="http://www.todayonline.com/business/asia-stock-rally-fizzles-bonds-gain-and-yen-jumps" data-text="Your sharing text will come here."><u><font color="#0066cc">Share</font></u></a><br></p></div><div class="authoring full-date"><span class="date-label">Published: </span><span class="date-value">11:10 AM, February 16, 2017</span></div><div class="authoring full-date"></div><div class="authoring"></div><div class="content"><p><br></p><p><strong><span style="font-size: 11pt;">TOKYO/SYDNEY</span></strong><span style="font-size: 11pt;"> — Reflation fever failed to spread to Asia hours after global equities soared to the highest level on record. </span></p><p><span style="font-size: 11pt;">Stocks in Tokyo fell as the yen jumped and US Treasuries climbed after five straight days of declines. The moves came after the MSCI All-Country World Index closed at an all-time high on Wednesday (Feb 15). </span><iframe style="margin: 0px; padding: 0px; border: currentColor; border-image: none; width: 100%; height: 0px; display: block;"></iframe></p><!-- inline --><div class="left "></div><p><span style="font-size: 11pt;">Evidence of firming US inflation had spurred bets that the economy can withstand higher interest rates as it waits for stimulus from the Trump administration. The US dollar slipped against most major currencies.</span></p><p><span style="font-size: 11pt;">World equities have jumped in value to more than US$70 trillion (S$99.37 trillion) after a rally since Donald Trump’s election that has been spurred by optimism for stronger US economic growth. A technical indicator showed MSCI’s broadest measure of global equities might have become overbought. </span></p><p><span style="font-size: 11pt;">Wednesday’s data lifted the odds for a Fed rate hike in March to 42 per cent from 30 per cent two days ago, helped by Fed chair Janet Yellen’s testimony that the central bank doesn’t need to wait for Mr Trump to outline plans on fiscal stimulus before resuming rate hikes. </span></p><p><span style="font-size: 11pt;">US year-on-year inflation reached 2.5 per cent for January, the fastest pace since 2012.</span></p><p><span style="font-size: 11pt;">Before Yellen’s testimony, traders had anticipated the Fed would start raising US borrowing costs in June. Now they see one as early as May, according to futures data compiled by Bloomberg. Data this week also showed factory price increases accelerated in China.</span></p><p><span style="font-size: 11pt;">Japan’s Topix fell 0.3 per cent at 10.11am, after fluctuating between gains and losses earlier in the day. Australia’s S&P/ASX 200 Index fell 0.1 per cent.</span></p><p><span style="font-size: 11pt;">Hong Kong’s Hang Seng was flat, erasing an earlier gain of 0.7 per cent. The Hang Seng China Enterprises Index fell 0.1 per cent, after Wednesday’s 1.9 per cent surge. </span></p><p><span style="font-size: 11pt;">Futures on the S&P 500 fell 0.1 per cent after the benchmark index rose 0.5 per cent and the MSCI All-Country World Index added 0.6 per cent on Wednesday. </span></p><p><span style="font-size: 11pt;">The yen rose 0.3 per cent to 113.84 per US dollar, after snapping a 0.9 per cent decline on Wednesday. </span></p><p><span style="font-size: 11pt;">The yield on 10-year Treasuries dropped one basis point to 2.48 per cent after increasing for a fifth day on Wednesday. </span><strong><span style="font-size: 11pt;">BLOOMBERG</span></strong><br></p></div></article></div></div><p><br></p>
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