Asia stocks touch 29-month top, China blue chips at five-year high
The Nikkei had dipped on Friday after Prime Minister Shinzo Abe’s resignation stirred doubts about future fiscal and monetary stimulus policies.
The U.S. ISM manufacturing survey is also expected to show a continued pick up in activity in August, while August payrolls on Friday are forecast to rise 1.4 million with the unemployment rate dipping to a still painfully-high 9.8%. The risk of higher inflation in the future, assuming the Fed can get it there, was enough to push up longer-term Treasury yields and sharply steepen the yield curve.
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