While the US bond yields rose closer to four-year highs
The Japanese Nikkei 225 increased by 1.17%. The South Korean Kopsi added 0,87%. Australia’s S&P/ASX 200 rose 0.24%. China’s Shanghai Composite index fell by 1.57%. Hong Kong’s Hang Seng rose 0.79%.
As reported “Vesti.Economy”, statistics from the General administration of customs of China showed on Thursday that the trade surplus of the country in January fell to the lowest in 11 months, as imports grew at the fastest rate since February last year. However, the data may be skewed because in 2017 the Chinese New year started early.
Meanwhile, the leaders of the U.S. Congress reached a two-year budget deal, which involves increased government spending by nearly $300 billion This should prevent the closure of the government, but also to sharply increase the Federal budget deficit.
In combination with the expected stimulus to the economy from tax reform, the increased costs can overheat the already strong growth in the US and accelerate inflation to levels that are not observed for more than 10 years.
Such concerns have led to the fact that the yield on 10-year US Treasury bonds increased to 2,837%. The yield is close to a four-year high of 2,885% achieved on Monday.
The Senate and the house of representatives is expected to vote on the proposed deal on Thursday. Budget deal supported the dollar, which rose against the major currencies.
The Euro dropped to $1,2275, remaining near minimum for two weeks. The dollar is trading around 109,62 the yen, recovering from Wednesday minimum in 108,92.