Asian stocks join global rally, U.S. yields cling to highs

Asian stocks join global rally, U.S. yields cling to highs

Asian shares and European stock futures advanced on Wednesday after a strong session on Wall Street, while U.S. treasury yields held near multi-year highs ahead of closely watched inflation data this week.

Investors across asset classes are devoting considerable thought to the pace and timing of interest rate hikes by central banks across the world.

Barring any big surprises, the consumer price index should cement expectations the U.S. Federal Reserve will raise interest rates next month, with a strong print offering further support to those tipping a larger 50 basis point rise.

MSCI's broadest index of Asia-Pacific shares outside Japan added 1.5% to its highest in two weeks, helped by a 3.8% gain in Hong Kong-listed tech stocks , especially index heavyweight Alibaba 9988.HK which rose 6.6%.

Japan's Nikkei gained 1.2%.

Futures indicated the share rally would continue into European and U.S. trading, with the pan-region Euro Stoxx 50 futures up 0.81%, FTSE 100 futures rising 0.85% and e-mini futures for the S&P 500 EScv1 0.5% higher.

Overnight, three main Wall Street indexes closed higher with tech stocks including Apple Inc nd Microsoft Corp jumping, as did bank stocks supported by the prospect of higher U.S interest rates. .N

Nonetheless, the Nasdaq Composite is still down 9.2%