(Bloomberg) -- Asian stocks are set to start the week stronger after the U.S. moved a step closer to a massive stimulus package and China data pointed to strong global demand as economies recover from the pandemic. Currencies were steady.
The U.S. House is ready to approve a $1.9 trillion Covid-19 relief plan after the Senate passed the legislation. Futures pointed higher in Japan, Australia and Hong Kong. On Friday, U.S. stocks rebounded, with all major groups in the S&P 500 Index and technology gaining.
Benchmark 10-year yields stabilized after hitting 1.6% as a U.S. jobs data topped estimates, fueling anxiety the economy could run too hot and kick up inflation.
Investors are being tested amid improving economic data that has sent bond yields spiking and raised concerns about equity valuations. China's exports jumped in the first two months of the year.
Federal Reserve officials continued to play down a need for policy response amid higher yields. U.S. Treasury yields have been rising because of a much stronger economic outlook and are not a cause for worry -- or a call to policy action -- according to St. Louis Fed President James Bullard.
"I think markets are reasonably priced for the recovery we are having," said Maurice Gravier, chief investment officer at Emirates NBD. "The early stages of this rebound are the most spectacular and they've raised questions of inflation, but we think there is still upside for risk assets. The Fed is right to be patient."
Elsewhere, oil prices surged after Saudi Arabia convinced fellow OPEC+ members to keep output largely unchanged. Meanwhile, oil traders will be on alert after Saudi Arabia said an oil storage facility came under attack on Sunday by missiles and drones that were intercepted.
Here are some key events to watch:
The annual session of China's National People's Congress continues in Beijing Monday.Japan GDP is due Tuesday.EIA curde oil inventory report is due WednesdayThe U.S. February consumer price index will offer the latest look at price pressures bubbling up in pockets of the U.S. economy on Wednesday.The European Central Bank holds its monetary policy meeting and President Christine Lagarde briefing Thursday.
These are some of the main moves in markets:
The S&P 500 rose 2% Friday.Nikkei 225 futures climbed 1.4%.Australia's S&P/ASX 200 Index futures rose 1.6%.Hong Kong's Hang Seng Index futures rose 0.5% earlier.
The yen slipped 0.1% to 108.43 per dollar.The offshore yuan was trading at 6.5149 per dollar.The Bloomberg Dollar Spot Index increased 0.4% Friday.The euro was at $1.1919.
The yield on 10-year Treasuries was steady at 1.57% Friday.
West Texas Intermediate crude climbed 3.5% to $66.09 a barrel.Gold rose 0.2% to $1,700.63 an ounce.
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