Asian shares took a breather on Monday while Treasury yields were at 10-month highs as"trillions" in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
"Asia has come through the second global crisis this millennium with its credentials," said ANZ chief economist Richard Yetsenga. President-elect Joe Biden is due to announce plans for"trillions" in new relief bills this week, much of which will be paid for by increased borrowing.At the same time, the Federal Reserve is sounding content to put the onus on fiscal policy with Vice Chair Richard Clarida saying there would be no change soon to the US$120 billion of debt the Fed is buying each month.
The poor payrolls report will heighten interest in U.S. data on inflation, retail sales and consumer sentiment. The euro pulled back to US$1.2185 from a recent top of US$1.2349, but has support around US$1.2190. The dollar also firmed to 104.08 yen from a trough of 102.57 hit last week.
Singapore Latest News, Singapore Headlines
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