Stocks, Futures Rally After Fed Inflation Comments

Asian stocks and U.S. equity futures rose Tuesday following a Wall Street rally, buoyed by soothing Federal Reserve comments on inflation and China’s efforts to temper commodity prices. MSCI Inc.’s Asia-Pacific equity index was set for the highest close in about two weeks. China’s CSI 300 gauge surged about 3% following Beijing’s efforts to talk down raw material costs. European and U.S stock futures climbed after the S&P 500 advanced and the Nasdaq 100 outperformed overnight.

The Fed comments aided sentiment, as officials reiterated they expect transitory rather than lasting price pressures from the U.S. economic rebound. Treasury yields held a retreat and the dollar extended a decline.

Oil retained the biggest two-day gain since March as investors tracked a recovery in demand that may enable the market to accommodate any fresh flows from Iran should the nation’s nuclear deal be revived.

Stocks

S&P 500 futures rose 0.4% as of 7:24 a.m. in London. The index added 1%.Nasdaq 100 contracts rose 0.6%. The gauge added 1.7%Japan’s Topix index climbed 0.3%Australia’s S&P/ASX 200 index gained 1%South Korea’s Kospi index climbed 0.8%Hong Kong’s Hang Seng index rose 1.6%China’s CSI 300 Index was up 3%Euro Stoxx 50 futures rose 0.3%

Currencies

The yen was at 108.73 per dollarThe offshore yuan rose 0.2% to 6.3958 per dollarThe Bloomberg Dollar Spot Index dipped 0.1%The euro was at $1.2233

Bonds

The yield on 10-year Treasuries was at 1.60%Australia’s 10-year bond yield was steady at 1.69%

Commodities

West Texas Intermediate crude rose 0.2% to $66.16 a barrelGold dipped 0.2% to $1,877.52 an ounce

Stocks, Futures Rally After Fed Inflation Comments: Markets Wrap, Bloomberg, May 25