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Asia bonds during one-week highs on US cues; oil jumps

HONG KONG Asian bonds rose to one-week highs, helped by plain overnight gains on Wall Street, yet investors were heedful of chasing prices aloft until President-elect Donald Trump picks his mercantile team. Oil extended gains.

Crude oil climbed in Asian trade with U.S. West Texas Intermediate (WTI) adult 1 percent as a dollar pulled behind and expectations of prolongation cuts grew.

Prices surged 4 percent to a three-week high on Monday, after comments from Russian President Vladimir Putin lifted hopes that writer countries will strech a understanding during a assembly subsequent week to extent output.

MSCI’s broadest index of Asia-Pacific shares outward Japan was adult 1.3 percent, pulled adult by a 1.3 percent convene in Australian shares. Korean shares and Hong Kong bonds rose 0.9 and 1.3 percent each.

European bonds were also approaching to open aloft with gains seen around 0.5 percent for pivotal markets.

“Most of a upsurge into bonds seems to be retail-oriented with institutional investors preferring to lay out a convene unless they get a clearer design on Trump’s mercantile team,” pronounced Andrew Sullivan, handling director, sales trade during Haitong International Securities Group in Hong Kong.

Trump met some officials and summarized skeleton for his initial day in bureau on Monday, including withdrawing from a TPP Asia-Pacific giveaway trade settle and questioning abuses of work visa programs.

Such actions might lead to plea by trade partners such as China and could potentially derail markets, remarkable Libby Cantrill, conduct of open process during bond hulk PIMCO.

But for now, expectations that Trump’s administration will adopt expansionary mercantile policies have sent U.S. bonds to a record high, while a faith that such policies would fuel acceleration and lead to aloft seductiveness rates pushed adult bond yields and strengthened a dollar.

On Monday, U.S. bonds sealed during a record high and European markets changed higher.

Investors in Japanese bonds seemed unfazed by Tuesday’s e trembler in northern Japan.

“Investors will conflict if some-more manufacturers hindrance operations in their factories in a region, though right now a impact from a trembler is limited,” pronounced Hiroaki Mino, executive of a investment information dialect during Mizuho Securities.

The benchmark Nikkei normal was broadly solid and a yen ticked adult a shade opposite a U.S. dollar, nonetheless still nearby a five-month low strike progressing in a session.

Trading volume was generally low forward of a U.S. Thanksgiving holiday, with expectations of a U.S rate boost subsequent month already labelled in by markets.

The dollar, that has rallied over 5 percent opposite a trade-weighted basket of currencies given Trump’s victory, combined a gains.

“There is a account that there will be strongleadership given Republicans took a White House and both houses of Congress. But we have to keep in mind that Trump also divided a republic as good as a Republicans,” pronounced DaisukeUno, arch strategist during Sumitomo Mitsui Bank.

The dollar’s amiable debility propped adult bullion prices with mark bullion adult 0.3 percent during $1217.70 per ounce. Gold prices have depressed 10 percent given a U.S. choosing outcome.

It also helped rising marketplace currencies trim some waste after a new battering. The Chinese yuan rebounded from a nearby 8-1/2 low strike on Monday.

With markets relocating higher, sensitivity indicators receded. The CBOE Volatility Index, a supposed “fear gauge”, fell 3.4 percent.

(Reporting by Saikat Chatterjee; Additional stating by Ayai Tomisawa in TOKYO; Editing by Simon Cameron-Moore and Eric Meijer)

Article source: http://www.reuters.com/article/us-global-markets-idUSKBN13H02S