A rally in Asian equities looked set to prolong into a third week after US stocks posted strong gains and Treasury yields dipped with US monetary policy back in focus in a week that includes two appearances from Federal Reserve Chairman Jerome Powell. The yen dropped.
Futures in Japan, Australia and Hong Kong all signaled equities will rise when Monday trading starts after the S&P 500 Index rose 1.6 per cent Friday.
Powell will address the House Financial Services Committee tomorrow and the Senate Banking Committee two days later to give his Humphrey-Hawkins testimony.
Bond traders are pricing less than the three quarter-point rate hikes that Fed officials havesignalled as likely this year.