GLOBAL MARKETS-Asia shares set to rise after S&P 500, Dow hit records on strong economic data

By Chibuike Oguh
April 6 (Reuters) - Asian equities are poised to rise on
Tuesday after the S&P 500 and Dow indexes set records as a
streak of strong U.S. economic data fueled optimism even as a
smaller-than-expected climb in 10-year Treasury notes eased
inflation concerns.
Investor sentiment was buoyed by a survey from the Institute
for Supply Management (ISM) on Monday showing activity in the
U.S. services industry reached its highest level on record in
March. The data came after a jobs report on Friday beat
forecasts with 916,000 added to the U.S. economy last month.
"The jobs report set the stage for what we're seeing today,"
said Thomas Hayes, chairman of Great Hill Capital LLC in New
York. "It's not only that the report crushed expectations but it
showed that wage inflation was subdued as people compete for
labor."
Australian S&P/ASX 200 futures YAPcm1 rose 0.34% in early
trading, while Hong Kong's Hang Seng index futures .HSI
HSIc1 rose 0.40%.
The S&P 500 and the Dow - the benchmark Wall Street indexes
- have rallied in recent sessions as widespread vaccinations and
an unprecedented government stimulus boosted investor confidence
in an economic rebound and spurred demand for sectors, including
energy .SPNY , financials .SPSY and materials .SPLRCM. ,
which are primed to benefit from economic reopening.
On Monday, gains were led by sectors that have
underperformed recently, including communication services
.SPLRCL , consumer discretionary .SPLRCD and technology
.SPLRCT , as the 10-year U.S. Treasury yield remained below a
14-month high hit last week.
"The rate of change with the 10-year yield has slowed and
that has created a runway for some of the left behind sectors in
recent weeks like tech and other yield sensitive areas like
utilities," Hayes said.
On Wall Street, Dow Jones Industrial Average .DJI rose
1.13% to a record high of 33,527.19, the S&P 500 .SPX gained
1.44% to a record 4,077.91 and the Nasdaq Composite .IXIC
added 1.67%, to 13,705.59.
U.S. Treasury yields edged lower on Monday, as investors
paused recent selling of government bonds and took profit from
short positions, though the uptrend in rates remained intact
following Friday's blockbuster jobs report.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 1.7127%, from 1.72% late on Friday. The yield curve
steepened on Monday after flattening the previous session as the
spread between U.S. 2-year and 10-year yields rose to 154 basis
points US2US10=TWEB . Gold prices edged lower as the safe-harbour metal's luster
was dimmed by rising global equity prices. Spot gold XAU= declined 0.1% to $1,727.98 an ounce. U.S.
gold futures GCv1 settled little changed at $1,728.80.
Oil prices fell as increasing OPEC+ supply and rising
Iranian output, along with the threat of a new wave of COVID-19
infections, offset hopes for a demand rebound driven by economic
revival. U.S. crude CLcv1 settled at $58.65 per barrel, down 4.6%
on the day, while Brent LCOcv1 shed 4.18% to end at $62.15 per
barrel.

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