Stocks rally


    SYDNEY- Asian shares rallied on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge US stimulus package underpinned optimism about the global economy and sent oil prices higher.

    China’s official manufacturing PMI out over the weekend missed forecasts, but Japanese figures showed the fastest growth in two years.

    Investors are also counting on upbeat news from a raft of US data due this week including the February payrolls report.

    Helping sentiment was news deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday.

    MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8 percent, after shedding 3.7 percent last Friday.

    Japan’s Nikkei rallied 2.1 percent, while Chinese blue chips added 0.5 percent.

    NASDAQ futures bounced 1.2 percent and S&P 500 futures 0.9 percent. EUROSTOXX 50 futures and FTSE futures both rose 1.1 percent.

    Yields on US 10-year notes came off to 1.41 percent, from last week’s peak of 1.61 percent, though they still ended last week 11 basis points higher and were up 50 basis points on the year so far.

    “The bond moves on Friday still feel like a pause for air, rather than the catalyst for a move towards calmer waters,” said Rodrigo Catril, a senior strategist at NAB.

    “Market participants remain nervous over the prospect of higher inflation as economies look to reopen aided by vaccine roll outs, high levels of savings along with solid fiscal and monetary support.”