Asian markets mixed at opening after last week's gains
There were minor losses in Tokyo, Seoul, Wellington and Manila.
HONG KONG (AFP) - Asian stocks were mixed Monday as traders took a breather after last week’s rally, with concerns about Federal Reserve monetary policy easing as sentiment is driven by the bright outlook for the global economy.
The bipartisan agreement between US lawmakers Thursday on a huge infrastructure deal provided an extra boost to already upbeat investors, who have also been calmed by Federal Reserve pledges to maintain record-low interest rates and vast bond-buying for as long as the recovery needs.
Even a sharp spike in a closely watched gauge of consumer spending for May was taken in stride on trading floors, with much of the surge being attributed to rallying energy costs.
After another record close on Wall Street, Asia struggled to maintain momentum on Monday.
Shanghai, Singapore and Taipei rose but there were minor losses in Tokyo, Seoul, Wellington and Manila, while Sydney was flat.
Hong Kong was closed in the morning owing to heavy storms in the city.
Observers warned that while the general mood was positive, investors remained on edge as inflation continues to be a worry.
The Fed "are far away from tapering, they are far away from increasing rates, but at some point, if the markets sees the Fed being too far behind the curve you will start to see some adjustment on the long end of the curve", Charles-Henry Monchau, at FlowBank SA, told Bloomberg TV.
"We might not have seen the peak in bond yields. I would not be surprised to see some adjustments in the coming months. That might be an excuse for the market to take a bit of profit."
