Asia Extends Global Gain as Yellen Buoys Stocks: Markets Wrap

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Banks led broad gains in global stocks after Janet Yellen said the Federal Reserve doesn’t need to wait for the Trump’s administration’s plans on fiscal stimulus to hike rates. The dollar held gains and bonds dropped.

Equities from Tokyo to Sydney rose after four major American equity benchmarks closed at unprecedented levels for a second day. Chinese stocks in Hong Kong jumped the most in almost three months after record new credit fueled optimism about the strength of the economy. The yield on the 10-year Treasury note is up for a fifth day and the dollar is strengthening against most major currencies after the Fed chair said waiting too long to raise rates could disrupt financial markets.

Trump reflation trades were back in vogue after Yellen’s comments, with odds for an increase in U.S. borrowing costs next month climbing to 34 percent. Inflation data Tuesday from China to America showed accelerating price gains at factories, bolstering the case for tightening before a reading on U.S. consumer price data Wednesday.

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