Asian stocks crept up on Thursday following another steady performance by Wall Street shares which hovered near record highs, while the euro clung to modest gains after rebounding from 13-month lows.
The MSCI Emerging Markets Index advanced 0.2 percent, touching the highest since August 2011 as South Korea’s Kospi index climbed 0.4 percent and Tokyo's Nikkei shed 0.5 percent, weighed by overnight gains in the yen.
The Australian dollar rose to a three-week high versus the U.S. dollar after second quarter business investment data beat forecasts.
Japanese and Australian bonds advanced, extending a global rally, while emerging-market stocks pared gains after hitting a three-year high. The yield on 10-year (GSPG10YR) Japanese government bonds dropped to a fresh 16-month low and the rate on similar Australian notes slipped four basis points by 12:34 p.m. in Tokyo.
Standard & Poor’s 500 futures were little changed as the S&P 500 crept up to another record closing high overnight, with U.S. stocks supported by brighter prospects for the economy. 30-year Treasury rates held near a 15-month low. The U.S. dollar weakened against most peers and gold and silver rose a third day.
The euro received some reprieve after three sessions of losses as feverish speculation of an imminent round of easing by the European Central Bank was tempered for now.