Global shares advance as US bond yields push dollar higher

 
 
Posted4/24/2018 7:00 AM
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  • A man walks by an electronic stock board of a securities firm in Tokyo, Tuesday, April 24, 2018.  Asian shares were mostly higher in directionless trading Tuesday after Wall Street couldn’t hang to an early gain and finished mostly lower.

    A man walks by an electronic stock board of a securities firm in Tokyo, Tuesday, April 24, 2018. Asian shares were mostly higher in directionless trading Tuesday after Wall Street couldn’t hang to an early gain and finished mostly lower. Associated Press

  • A man walks by an electronic stock board of a securities firm in Tokyo, Tuesday, April 24, 2018. Asian shares were mostly higher in directionless trading Tuesday after Wall Street couldn't hang to an early gain and finished mostly lower.

    A man walks by an electronic stock board of a securities firm in Tokyo, Tuesday, April 24, 2018. Asian shares were mostly higher in directionless trading Tuesday after Wall Street couldn't hang to an early gain and finished mostly lower. Associated Press

TOKYO -- Global shares mostly rose Tuesday as a surge in U.S. bond yields pushed the value of the dollar higher against other major currencies.

KEEPING SCORE: France's CAC 40 was little changed, inching down less than 0.1 percent to 5,437.03 in early trading. Germany's DAX edged up 0.3 percent to 12,612.45. Britain's FTSE 100 rose 0.3 percent to 7,421.75. U.S. shares were also set to drift higher with Dow futures adding 0.3 percent to 24,476. The S&P 500 future gained 0.3 percent to 2,679.30.

ASIA'S DAY: Japan's benchmark Nikkei 225 rose 0.9 percent to finish at 22,278.12, helped by the weaker yen. Australia's S&P/ASX 200 climbed 0.6 percent to 5,921.60, and South Korea's Kospi lost 0.4 percent to 2,464.14. Hong Kong's Hang Seng added 1.4 percent to 30,661.56, while the Shanghai Composite jumped nearly 2.0 percent to 3,128.93, recouping losses from the previous day. Shares were mixed in Southeast Asia.

U.S. BOND YIELDS: The yield on the 10-year Treasury note drew close to 3 percent on Monday, a milestone it has not reached since January 2014. It touched 2.98 percent but by early Tuesday in Asia had fallen back to 2.96 percent. The 10-year yield stood at 2.43 percent at the end of 2017. Since the global financial crisis in 2008-09, a combination of low inflation expectations and a bond-buying program by the Federal Reserve have helped keep bond yields low but they have climbed this year as inflation has picked up and the Federal Reserve raised interest rates. With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks. They also make U.S. dollars relatively more attractive.

THE QUOTE: "The U.S. dollar has put on a compelling show overnight as the stars align on the back of higher U.S. yields and a considerable reduction in the U.S. dollar's geopolitical risk premium as an outwardly calmer mood surrounding trade and geopolitical risk takes hold," Stephen Innes of OANDA said in a commentary.

ENERGY: Benchmark U.S. crude oil gained 58 cents to $69.22 a barrel. It rose 0.4 percent to $68.64 a barrel in New York the previous day. Brent crude, used to price international oils, gained 46 cents to $75.17 per barrel in London.

CURRENCIES: The dollar rose to 108.84 yen from 108.71 yen. The euro fell to $1.2196 from $1.2233.

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Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

Her work can be found at https://www.apnews.com/search/yuri%20kageyama

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