Equities rise, though a surge in oil prices to three-year highs may inflame inflation fears and aggravate central banks’ recent hawkish turn
A man watches an electronic ticker tape outside a securities firm in Tokyo, Japan. Picture: BLOOMBERG/SOICHIRO KORIYAMA
“The current global oil supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above consensus forecast.” Japan’s Nikkei gained 0.4% on the hope for further fiscal stimulus once a new prime minister is chosen. Japan will hold a Liberal Democratic Party leadership race on September 29, and the winner is assured of becoming the country’s next prime minister because of the party’s parliamentary majority.Chinese blue chips gained 1.
The week is packed with US Federal Reserve speeches led by chair Jerome Powell on Tuesday and Wednesday, with more than a dozen other events on the calendar. The lift in yields underpinned the dollar, particularly against emerging market currencies which compete with treasuries for global funds. The euro was steady at $1.1719 as investors pondered the implications of a German government led by the centre-left Social Democrats after a narrow victory in Sunday's election.