Asian stocks rose after Wall Street posted gains overnight, brushing aside strong U.S. inflation data, while Treasury yields jumped in anticipation of more rapid U.S. interest rate hikes.
MSCI’s broadest index of Asia-Pacific shares outside JapaN was up 1.3 percent by 0400 GMT.
“People are starting to reassess, even with higher inflation numbers, even with higher yields, as long as earnings growth continues to be positive, it’s enough to offset the higher yields,” said Joel Ng, a research analyst at KGI Securities in Singapore.
Valuations in Asia especially are cheaper compared to U.S. markets and a lot of companies have been raising dividends lately, Ng added.
Singapore shares rose as much as 1.1 percent, boosted by financials.
Oversea-Chinese Banking Corp Ltd climbed 4.1 percent, while United Overseas Bank Ltd rose 3.1 percent.
The city-state’s annual non-oil domestic exports in January surged 13 percent, beating analysts’ 9 percent growth estimate, as sales of petrochemical products jumped, suggesting broadening domestic economic growth.
Malaysian shares rose as much as 0.4 percent, on track to end higher for a fourth consecutive session, on the back of gains in consumer staples and financials.
Palm oil producer Sime Darby Plantation Bhd climbed 2 percent, while financial firm CIMB Group Holdings Bhd gained 1.2 percent.
Indonesian stocks gained as much as 0.5 percent, with materials and energy sectors rising on the back of strong commodity prices.
Coal miner Adaro Energy Tbk PT rose 2.5 percent, while nickel miner Vale Indonesia Tbk PT climbed 3.9 percent.
Meanwhile, Philippine shares fell as much as 0.9 percent, after gaining 1.3 percent over the last two sessions.
Telecom service provider PLDT Inc lost as much as 2.4 percent, while BDO Unibank Inc fell 1.3 percent.
Vietnam stock market was closed for a holiday. – Reuters