Asia stocks, bonds expect the Fed to be accommodating by Reuters

By Wayne Cole

SYDNEY (Reuters) – Asian stocks advanced on Monday while bonds were demanded globally on speculation mounting The US Federal Reserve will sound incredibly wise at its political meeting this week.

Japan's Nikkei () advanced 0.59 percent, and MSCI's widest index for Asia-Pacific stocks outside of Japan () rose 0.6 percent.

Shanghai shavings) climbed 1[ads1].6 percent and scattered betters pointed to modest opening gains for the major European bursaries. One focus will be shares in Deutsche Bank (DE 🙂 and Commerzbank (DE 🙂 after the banks confirmed that they were in merger negotiations.

E-Mini futures for () dithered each side of the flat. The S&P 500 boasts its best weekly win since late November last week, while Nasdaq had its best week so far this year. ()

There is a lot of talk Fed makers will lower interest rate forecasts, or "dot plots," to show little or no further tightening this year.

It is also expected to be more detailed on a plan to stop cutting Fed's holdings of nearly $ 3.8 billion in bonds. The two-day meeting ends with a press conference on Wednesday.

As a result, the yield on three-year and five-year government bonds has fallen in line with the effective Fed stock exchange rate, while futures provide a better than steady chance of a cut in interest rates by year-end.

"Long-term bond yields remain noticeably lower over a wide range of countries," said CEO Alan Oster at National Australia Bank.

"Markets have little or no chance of an interest rate hike by the major central banks this year, outside the UK bank. The Fed indicates it will be patient, and we do not expect any interest rate hikes this year."

MORE BREXIT DRAMA [19659004]] Data on Friday showed that production production in the US fell in another straight month in February, and factory activity in the New York state hit almost a two-year low this month, suggesting a sharp decline in economic growth early in first quarter. [19659004] A marked decline in government bonds has dragged on the dollar, leaving it at 111.53 yen from a peak of 111.89 on Friday. Against a basket of currencies, the dollar was fixed at 96,498 () after throwing 0.7 percent last week.

The euro held at $ 1,1333 (), well up from the last trough of $ 1.174, which was hit when the European Central Bank took a deep self-growth.

Sterling was stuck at $ 1,3289 as markets are expecting some clarity on where the Brexit drama was heading.

The British Prime Minister Theresa May's government is scared to get support in parliament for her Brexit agreement.

Mai has only three days to win approval for her EU-leaving agreement if she wants to head to the block leaders on Thursday with something to offer them in return for more time.

"Most Brexit permutations look moderately positive at GBP for the week, but long-term challenges were underlined by BCC's business investment cut forecasts most over the course of 10 years," said Sue Trinh, RBC Capital Markets & # 39; leader of the Asia FX strategy.

The British Chambers of Commerce (BCC) forecast a decline in investment during 2019.

In the commodity markets, it fell to $ 1,298.81 per ounce .

Oil prices were just outside their highest for the year so far. US commodities () were last down 26 cents at $ 58.26 per barrel, while Brent crude () futures lost 16 cents to $ 67.00. [O/R]