Ten-year US Treasury yields were back above 2.5 per cent to their highest of 2017 so far and the equivalent German and French yields jumped to their highest levels in over a year. "The reflation trades are being driven by two main things," said Neil Williams, chief economist at fund manager Hermes. "Countries more willing to open the fiscal box and we are awaiting Mr Trump's long-awaited tax cuts in mid-year. Japan's Nikkei brushed aside a stronger yen to rise 1.7 per cent, Hong Kong's Hang Seng climbed 1.3 per cent and Shanghaiedged up ahead of a week-long Lunar New Year holiday. The dollar index , which tracks the greenback against six other top currencies, clawed back from its overnight lows to stand flat on the day.

Source: Economic Times January 26, 2017 10:35 UTC