Asian shares rose, the dollar steadied and Treasuries slipped as the second quarter began for some of the region’s traders. Volumes were subdued with many markets across the world still closed for the Easter holiday.
Equities in Japan and China traded higher, though gains were pared as the session progressed. South Korean shares were little changed while U.S. index futures showed small declines. The yen was steady as traders digested a poll showing improved support for Prime Minister Shinzo Abe’s cabinet. The won rose to its strongest against the dollar in over three years as tensions in the region showed further signs of easing. West Texas crude oil climbed past $65 per barrel.
The start of April may be a welcomed change for Asian investors after a rocky March
Investors are entering the second quarter on the defensive, after the worst three months for global stocks in more than two years, characterized by a surge in volatility and a barrage of concerns from escalating trade tensions to profit taking in technology shares. Focus this week turns to U.S. labor market data Friday with unemployment expected to fall to its lowest since 2000. Traders are also awaiting details on U.S. plans for tariffs on China.
“With interest rates still relatively low, and generating negative real returns if you remain in cash, the yield attraction of equities and the growth prospects still make it look the best alternative,” Stephen Davies, founder and CEO of Javelin Wealth Management, told Bloomberg TV on Monday.
Javelin’s Davies discusses markets and his investment outlook.
Elsewhere, gold edged higher and Bitcoin remained below $7,000.
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