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Asia stocks, bonds count on the Fed to be accommodating by Reuters




© Reuters. FILM PHOTO: A man looks at an electronic stock listing card showing Japan's Nikkei average outside a broker in Tokyo

By Wayne Cole

SYDNEY (Reuters) – Asian stocks pulled ahead on Monday while bonds were sought globally in speculation speculation USA: s federal central bank will do so decisively at its political meeting this week.

Japan's Nikkei () advanced 0.59 percent and MSCI's widest index for Asia-Pacific outside Japan () increased by 0.6 percent.

Shanghai Blue chips) climbed 1

.6 percent and scattered betters pointed to modest opening gains for the major European bursaries. One focus will be shares in Deutsche Bank (DE 🙂 and Commerzbank (DE 🙂 after the banks confirmed that they were in merger negotiations.

E-Mini futures for () dithered either side of the plate. The S & P 500 shot its best weekly win since late November last week, while Nasdaq had its best week so far this year. ()

Fed politicians lower their interest rate forecasts, or "dot plots," to show little or no further austerity this year.

It is also expected to be more detailed about a plan to stop cutting Fed's holdings of nearly $ 3.8 trillion in bonds. The two-day meeting ends with a news conference on Wednesday.

The result is that the yield of three and five-year government debt is dead in line with the effective Fed fund's interest rate, while futures mean a better than even chance of an interest rate cut at year-end.

"Long-term bond yields remain significantly lower across a wide range of countries," said Alan Oster, CEO of National Australia Bank.

"Markets price little or no risk of raising key central banks this year, outside the UK bank. The Fed indicates it will be patient and we do not expect any increases this year."

MORE BREXIT DRAMA

] Data on Friday showed that US manufacturing production fell a second straight month in February, and the New York state manufacturing operations hit nearly two years low in the month, further evidence of a sharp slowdown in economic growth at the beginning of first quarter. [19659004] A marked decline in government bond yields has drawn the dollar, leaving it at 111.53 yen from a peak of 111.89 on Friday. Against a basket of currencies, the dollar was fixed at 96,498 () by 0.7 percent last week.

The euro was at $ 1,1333 (), well up from the last trough of $ 1.174, which was beaten when the European Central Bank took its own.

Sterling was still at $ 1,3289 as the markets are waiting for clarity on where the Brexit drama was heading.

Britain's Prime Minister Theresa Mays Government scares to get support in Parliament for her Brexit affair.

May only have three days to gain approval for her agreement to leave the European Union if she wants to go to the summit with the group's leaders on Thursday with something to offer them in return for more time.

"Most of the Brexit permutations look moderately positive for the GBP for the week, but the long-term challenges were underlined by BCC's forecast of a 10-year fall in corporate investment," said Sue Trinh, RBC Capital Markets Head of Asia FX Strategy. .

The British Chamber of Commerce (BCC) predicts a 1% decline in investment by 2019.

In the commodity markets, slightly eased to $ 1,298.81 per ounce .

So far, oil prices were highest for the year to date. US commodities () were 26 cents last at $ 58.26 a barrel while Brent crude () futures lost 16 cents to $ 67.00. [O/R]

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