Bond rout pushes cash back in to stocks

Bond rout pushes cash back in to stocks

The index is at its highest since March 4. Japan's Nikkei jumped 2.5% to touch a two-month top and the moves follow a gain of 1.1% for the S&P 500 and nearly 2% for the Nasdaq in overnight trade.







Reuters









March 23, 2022 / 08:24 AM IST





(Representative image)



Asian equities hit three week highs on Wednesday as cash fleeing tumbling bond markets flowed back toward big tech and other beaten-up sectors, while the Ukraine conflict's potential to further hit supplies kept oil and commodity prices high.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, with Hong Kong, Seoul and Sydney all registering similar sized gains.

The index is at its highest since March 4. Japan's Nikkei jumped 2.5% to touch a two-month top and the moves follow a gain of 1.1% for the S&P 500 and nearly 2% for the Nasdaq in overnight trade.

Bond markets extended their retreat as investors braced for the Federal Reserve to take an even more aggressive approach to taming inflation. Two-year Treasury yields are up 76 basis points (bps) in March and 10-year yields are up almost 60 bps to 2.4154%, the highest since