Record tech-led U.S. and international market indexes, a Treasury bond yield retreat, and fresh Chinese stimulus make for a strong cocktail ahead of Federal Reserve chairman Jerome Powell's speech this week.
As artificial intelligence exploded worldwide, Japan's Nikkei (.N225), opens new tab, reached 40,000 for the first time overnight. The chip-testing equipment producer Advantest (6857.T), which counts AI darling Nvidia (NVDA.O) as a customer, rose 3.7%, while Tokyo Electron (8035.T) rose 2.4%.
South Korea's Kospi (.KS11) rose more than 1%, while Taiwan's benchmark (.TWII) rose about 2%.
After forecasting 2017 revenue and earnings beyond Wall Street projections, Dell Technologies (DELL.N) rose 31.62%, its greatest daily percentage rise ever. Despite signs of stabilization, February U.S. manufacturing data unexpectedly fell further into contraction.
The factory signal caused a significant drop in Treasury yields, the largest daily drop in two-year levels since January. Friday's long list of Fed speakers made relatively mild statements on future rate cuts, some of whom hinted to a slowing of the central bank's balance sheet runoff.
On Friday, the New York Fed revealed that its overnight reverse repo facility, which helps floor short-term interest rates, brought in $441.3 billion, its lowest level in over three years.
Dallas Fed president Lorie Logan said the Fed's balance sheet rundown was going well, but it would likely need to slow down if that major reverse repo facility is exhausted.
Treasuries were also intrigued by Fed Governor Chris Waller's desire to increase Treasury holdings of short-term assets.
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