(Bloomberg) — Asian stocks rose, bolstered by shares of commodity-related firms as the price of copper and gold both climbed to record highs. Optimism over eventual Federal Reserve interest-rate cuts supported the rally.
Most Read from Bloomberg
MSCI’s gauge of regional equities advanced for a seventh day, with the materials sector posting the biggest percentage increase. Japanese shares led gains, while those in China, Hong Kong and Australia also marched higher, as did European and US futures.
Traders refining bets on the Fed finally pivoting toward rate cuts has shaped trading across financial markets in recent days. The Dow Jones Industrial Average of blue chips closed above 40,000 for the first time on Friday, and optimism about US easing helped gold surge to an all-time high on Monday.
“The Japanese market is playing a bit of catch-up,” said Masayuki Doshida, a senior market analyst at Rakuten Economic Research Institute. “While US stock prices are hitting all time highs, Japanese stocks have recovered only about a half of their losses from March to April.”
Investors are also keeping an eye on the Middle East after Iranian President Ebrahim Raisi died in a helicopter crash. President Raisi was seen as a favorite to eventually succeed Supreme Leader Ayatollah Ali Khamenei, who is the Islamic Republic’s top authority.
Bloomberg’s dollar index was little changed, after dropping last week when data showed US inflation in April eased more than economists expected. A number of Fed officials are due to speak this week, including Governor Christopher Waller who is set to talk specifically about the US economy and monetary policy.
Japan’s benchmark 10-year bond yield climbed to the highest since 2013 amid speculation the central bank is committed to normalizing interest rates and supporting the struggling yen.
Copper jumped to a fresh record, extending a rally that’s been driven by investors who have piled into the market in anticipation of deepening supply shortages. Futures on the London Metal Exchange rose above $11,000 a ton for the first…
..