Asian stocks rose along with U.S. equity futures Friday after solid economic data and President Joe Biden’s federal spending plans spurred a Wall Street rally in cyclical shares. Treasury yields climbed.
Japanese shares led gains and MSCI Inc.’s Asia-Pacific equity gauge was set for the highest close in a month. Earlier, industrial and financial shares fueled a modest overall increase in the S&P 500, while small-caps outperformed and the tech-heavy Nasdaq 100 slipped. European contracts were in the green.
U.S. data included a drop in jobless claims to a fresh pandemic low. Biden is reportedly set to unveil a budget that would take federal spending to $6 trillion in the coming fiscal year.
The 10-year U.S. Treasury yield reached 1.62% amid growth optimism and concerns of more debt supply to fund spending. The dollar was steady and the yen fell as Japan recommended extending a state of emergency that spans Tokyo to curb infections. China signaled the yuan’s recent appreciation is too rapid with a weaker-than-expected reference rate.