Asian shares edged up on Friday on expectations a deal will eventually be reached to avoid a U.S. fiscal crisis, but investors wary about taking big positions before the year-end were likely to take profits on the rises and buy on dips.
Friday, 30 November 2012
U.S. stocks climbed on Thursday, but shed some earlier gains, after John Boehner, the top Republican in Congress, poured cold water on hopes that lawmakers were getting closer to cutting a budget deal that would avert a possible recession next year.
Benchmark 10-year Treasury notes were trading 6/32 higher in price to yield 1.615 percent, down from 1.635 percent late Wednesday, while the 30-year bond was 10/32 higher to yield 2.789 percent from 2.803 percent.
The yen fell sharply earlier this month on speculation a change in the Japanese government at a Dec. 16 election would increase the pressure on the Bank of Japan to ease its policy, although some of those expectations are now being pared back.
The dollar changed hands at 82.13 yen, flat from late U.S. levels. It has been stuck near 82 yen for the past few sessions after its rally had ran out of steam at a 7 1/2-month high of 82.84 last week.
Oil prices rose on Thursday for the first time this week on optimism that U.S. lawmakers will resolve a budget fight to avert an economic slowdown and on increasing Middle East tensions that stoked fear about disruptions to oil supplies.
London copper slipped on Friday but was set to finish the month higher on signs a recovery in China's economic growth took root in November, although worries over Europe and the United States kept gains constrained.
Thursday, 29 November 2012
Asian shares ended a seven-day winning streak on Wednesday and commodities eased as investors fretted that a lack of progress in talks on U.S. budget woes risked putting the world's largest economy into recession, dragging down global growth with it.
Benchmark 10-year Treasury notes last traded 7/32 higher in price with a yield of 1.617 percent, down over 2 basis points from late Tuesday and under the 100-day moving average of 1.6495 percent, according to Reuters data.
The Nikkei had risen 8.8 percent over the past two weeks since the government announced a Dec. 16 election. Japan's main opposition party is forecast to win power, and investors expect it will force the Bank of Japan into aggressive easing.