Asian stocks held two-year highs on Monday and was found starting the month on steady grounds after 2 quarters in positive positions while expectations of credit tightening by the world’s central banks which kept the global bond markets under pressure.
The MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.1 percent, staying within a stone’s throw of its two-year peak hit last week.
Japan’s Nikkei was up by 0.2 percent while U.S. stock futures were also in the bull by another 0.2 percent.
Signs of stabilizing in China’s economy and a recovery in the European economy helped to boost global share prices in the first half of this year.
Signs of a steady economic recovery, however, have prompted some of the world’s central banks to release signals that their monetary policies could be tightened in coming months.
Global bonds yields have sharply risen, the aftermath of the comments from the European Central Bank President Mario Draghi last Tuesday, with German bonds yields posting their biggest weekly jump since December 2015.
In the Forex market, the Euro was being traded at $1.1423, which is not far from last week’s peak of $1.1445, which was the highest level in more than a year as the common currency found support that the ECB is more likely to scale back its stimulus.
The dollar traded at 112.30 yen, off Thursday's 6-week high of 112.93.