TOKYO / NEW YORK, March 16 (Reuters) – Asian stocks rallied Tuesday, following a rise in major Wall Street indices to record highs as investors watched key central bank meetings this week, starting with the US Federal Reserve .
An index of the region’s equity markets excluding Japan gained 0.7%, led by a 1.2% rise in the Australian benchmark S & P / ASX 200 index.
Japan’s Nikkei 225 gained 0.6% to just under the closely watched 30,000, while the broader Topix added 0.5%.
China’s blue chip CSI 300 index climbed 0.7%, and Hong Kong’s Hang Seng gained 0.7%.
On Monday, the S&P 500 and Dow Jones Industrial Average both surged thanks to soaring travel stocks as massive vaccinations in the United States and Congressional approval of a $ 1.9 trillion support bill fueled investor optimism.
E-mini futures for the S&P 500 were up 0.06%.
Investors are focused on the Fed’s two-day policy meeting, set to close on Wednesday, as bond yields have soared this year as investors bet central bankers will have to raise interest rates earlier than they have indicated so far to curb inflation. Fed policymakers are expected to forecast the U.S. economy to grow the fastest in decades by 2021.
The Bank of England will also meet on Thursday this week, while the Bank of Japan will wrap up a two-day meeting on Friday.
“Markets are likely to be in a holding pattern before this… tough week of central banks,” analysts at TD Securities write.
On Wall Street, the Dow Jones Industrial Average rose 174.82 points, or 0.53%, to 32,953.46, the S&P 500 gained 25.6 points, or 0.65%, to 3,968.94 and the Nasdaq Composite added 139 , 84 points or 1.05% to 13,459.71.
Shares of airlines rallied as the companies pointed to concrete signs of a recovery in the industry as the roll-out of vaccines helps to book leisure activities.
Germany, France and Italy discontinued AstraZeneca COVID-19 recordings after several countries reported possible serious side effects.
The development will be monitored in Australia, where the vaccine is also administered.
The pan-European STOXX 600 index remained flat on Monday, after hitting its highest level since February 2020.
Longer-term U.S. Treasury yields fell further on Tuesday as the market looked ahead to the Fed meeting and the latest government debt auctions.
The 10-year benchmark return, which reached an over-year high of 1.642% last week, was back at 1.595%
Rising inflation expectations could lead the Federal Open Market Committee to indicate that it will hike interest rates sooner than expected.
In currencies, the US dollar made small gains from overnight muted price action ahead of central bank meetings.
The greenback was mostly flat at 109,165 yen, after climbing to 109,365 for the first time since June on Monday.
The euro changed little at $ 1.19320, pining for an eighth session below the close-knit $ 1.20 level.
Bitcoin continued its decline from a record high of $ 61,781.83 reached on Saturday, the latter trading 3% weaker on the day at around $ 53,915.
US West Texas Intermediate Crude Oil for April changed hands at $ 64.79 a barrel, down 60 cents. Brent crude oil futures for May were at $ 68.21 a barrel, down 67 cents.
Reporting by Kevin Buckland and Elizabeth Dilts Marshall; Adaptation by Cynthia Osterman and Jacqueline Wong