A look at the day ahead in Asian markets from Jamie McGeever.
Although yields jumped again on Thursday following upward revisions to U.S. labor costs and surprisingly strong euro zone inflation, the three majorPerhaps stocks are making a bet that policymakers won't raise rates as aggressively as rates markets are implying. Maybe it's a play that rising nominal rates are merely matching inflation and inflation expectations, so policy isn't so tight in real terms and growth isn't suffering.
Maybe stocks were just so beaten down last year that investors are still buying any and every dip, maybe short-term options-related activity and trading around key technical levels - the 200-day moving average on the S&P 500, for example - are also at play.As well as the positivity stateside, traders in Asia will be hoping for encouraging readouts from February service sector purchasing managers index reports from Japan, Australia, India and, most importantly, China.
Investors will also be watching the dollar, which rose across the board on Thursday, spurred on by higher U.S. yields. Perhaps significantly, the euro had its biggest fall in a month - a sign that traders don't think theHere are three key developments that could provide more direction to markets on Friday:By Jamie McGeever; Editing by Josie KaoJamie McGeever has been a financial journalist since 1998, reporting from Brazil, Spain, New York, London, and now back in the U.S. again.
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