Asia markets track Wall St record as inflation fears ease

Sun Online Desk

11th March, 2021 11:58:49 printer

Asia markets track Wall St record as inflation fears ease

Asian markets ticked higher Thursday as inflation concerns eased, allowing investors to focus on the global recovery and progress in fighting the coronavirus pandemic.

Investors were given a positive lead from Wall Street, where the Dow ended at a new record, helped by news that Joe Biden’s stimulus had cleared its last hurdle in Congress, as expected, meaning he can sign it into law before the weekend, pumping almost $2 trillion into the economy.

Fears that a strong rebound in world growth this year will cause a surge in inflation that forces the Federal Reserve and other central banks to wind back their ultra-loose monetary policies — including record low interest rates — have fuelled a sell-off across risk assets in recent months.

But data Wednesday showing US prices rose slightly less than expected in February soothed those concerns, with the main diver of the increases being food and energy costs.

That came as a closely watched auction of benchmark US 10-year Treasuries went off without any problems with the notes selling at a yield broadly in line with expectations.