- The dollar fell against its Group-of-10 equivalents on Monday, but Japanese stocks rose amid quiet trade, with many major Asian cities closed for Lunar New Year celebrations.
- The Topix index increased by 0.9%, while Australian stocks varied. The S&P 500 index gained for the first time in four days on Friday, while the tech-heavy Nasdaq 100 enjoyed its greatest one-day rise since November as Google parent Alphabet and Netflix jumped. European stock contracts increased in value.
- Treasury yields in Asia were little changed, but bond yields in Australia and New Zealand rose, mirroring developments in the US debt market on Friday. The benchmark 10-yr yield in Japan decreased one basis point to 0.39%, considerably below the 0.5% cap established by Tokyo policymakers.
- The yen gained nearly 0.3% as the dollar fell broadly. Traders in global markets across many asset classes have been following our central bankers' lead. On Friday, Fed's Waller stated that policy appeared to be adequately restrictive, and he supported moderation in the amount of rate hikes. Fed's Harker reiterated his preference for more gradual rate hikes, while Fed's George stated that the economy can escape a dramatic slump.
