On Friday, Shares in Asia were expected to decline as Wall Street’s trade ended with mixed results and U.S government yields increased in the last session. U.S. stocks closed the last session mainly on lower note after much volatility. On Thursday, for the first time, the yield on the thirty year Treasury bond surpassed the 3 percent mark since May, meanwhile the 10 year yield increased as much as 2.792 percent.
The Dow Jones Industrial average gained 37.32 or 0.14 percent closing at 26,186.71. The S&P 500 fell by 0.6 percent to close at 2,821.98; the NASDAQ ended the session 0.35 percent lower at 7,385.86. Asian futures started at a low level. Nikkei futures in Chicago fell 0.62 percent at 23,340 while Osaka futures traded at the same levels. Nikkei 225 rose 1.68 percent on Thursday. In Australia, the S&P/ASX 200 declined 0.13 percent during early trade.
The British pounds surged for the third consecutive day on Thursday since investors are confident that the BOE will adopt a more hawkish approach at a policy meeting which will be held next week. BOE’s monetary policy is expected to maintain rates at 0.50 percent on the meeting on February 8. Markets are anticipating a 50 percent possibility of a rate increase by the month of May.
Sterling was up 0.3 percent to $1.4234 after hitting $1.4275 earlier while versus the euro, the pounds was up 0.2 percent closing at 87.63 pence. According to ING currency strategist Viraj Patel, lack of bad news also aided the pounds to recover. The GBP is still down by about 9 percent since the ER referendum; however, it is approximately 8 percent higher than the the level reached in Oct. 2016.