Asian stocks rise whereas US bond yields ease

Most of the stock exchanges in Asia ended the day with rises this Thursday, except for the Manila stock market, closed for a holiday.

The China Financial Futures Exchange CIS 300 Index Futures index increased by 1.76%. Meanwhile, the Nikkei futures index gained 1.23%, and E-Mini S&P 500 futures index added 1.18%. 

Today, Australia, New Zealand, Hong Kong, and Singapore are observing the Good Friday holiday.

The Singapore Stock Exchange rose by 16.34 points, 0.52 percent. The Straits Times composite indicator remained at 3,181.68 units.

The Jakarta stock market added 25.94 integers, 0.43 percent, and the JCI index closed with 6,011.46 units.

In Malaysia, the Kuala Lumpur Stock Exchange increased by 9.13 points, 0.58%, and the selective KLCI ended at 1,582.64 units.

In Thailand, the Bangkok stock market climbed by 7.91 points or 0.50%, and the SET index settled at 1,595.12 units.

Vietnam Ho Chi Minh Stock Index closed with 1,216.10 units after rising 24.66 integers or 2.07%.

US Treasury yields drop ahead of the employment report

Higher-than-expected weekly jobless claims put pressure on Treasury yields on Thursday, flattening the yield curve. However, it did not affect investors’ expectations too much for the market monthly employment report, which will be released today.

The Labor Department stated the number of Americans who filed new claims for unemployment benefits unexpectedly increased last week. The long end of the returns curve dropped after the data, continuing a downward movement that began during the Asian session.

The 10-year yield slipped 7.3 basis points to 1.674%. Meanwhile, the 30-year yield decreased 9.5 basis points to 2.328%.

The decline in the long end flattened the yield curve. The spread between the two-year and 10-year rates narrowed by 6.8 basis points.

A flatter curve may indicate a slowdown in the economy. Still, investors and economists expect Friday’s non-farm payroll report to show sharp acceleration in March’s job growth.

The drop in returns comes a day after the close of a notable quarter in which the benchmark yield rose more than 80 basis points. 

If the US employment report turns out to be strong, the returns are expected to increase again. On Thursday, other data released an improvement in the job market.

Challenger, Gray & Christmas, Inc. report showed that job cuts announced in March by employers in the United States were the lowest in more than two and a half years.

The Institute for Supply Management reported a jump in March in its national industrial activity index to the highest level in more than 37 years. The employment indicator for the sector soared to 59.6. it’s the highest reading since February 2018.