Although the strong U.S. data dampened the safe-haven appeal of government debt with Japanese 10-year bond futures tanking in early trade, futures markets <0> were only pricing in a U.S. rate hike only in 2017 as other major central banks looked set to add more stimulus in the coming weeks.
<0>MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent and was just hovering below a one-year high hit last week. It has gained for the last three weeks. “The general sentiment among investors in emerging markets is to make hay while the sun shines even though this rally is starting to look a bit dangerous,” said Cliff Tan, east Asian head of global markets research at Bank of Tokyo- Mitsubishi UFJ based in Hong Kong referring to stretched valuations.
