Asian shares rebounded from one-month lows on Friday, helped by signs global bond markets are stabilizing after a big selloff, though investors were on guard ahead of U.S. jobs data and crunch talks between Greece and its creditors at the weekend. Sterling jumped more than one percent against other major currencies after British Prime Minister David Cameron appeared set to govern Britain, showing surprising strength in a tightly-contested election.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4 percent, recovering from a one-month low hit earlier. Japan’s Nikkei .N225 ticked up 0.4 percent from one-month low hit on Thursday. Investors breathed a sigh of relief after the global bond market rout since late April appeared to have run its course for now.
“Yields have risen to levels that would attract investors,” said Chotaro Morita, head of Japan rates strategy at SMBC Nikko Securities. Buying of government bonds resumed after yields reached key levels, including 0.8 percent in German Bunds DE10YT=RR, 1 percent in French bonds FR10YT=RR and 2 percent for Italian and Spanish bonds.