Asian equities kicked off February with a recovery from a three day sell-off, as investors decided the outlook for growth and corporate earnings was strong enough to quell concerns about the recent jump up in bond yields. The dollar strengthened against most major currencies.
The MSCI Asia Pacific Index rose following a late rally in U.S. equities that saw the S&P 500 Index end January with the best start to a year for the U.S. benchmark since 1997. Japanese equities outperformed. India’s benchmark Sensex Index dropped, as did the rupee, on news that its government is proposing a long-term capital gains tax on investments in equities. China’s domestic stocks also tumbled, heading for the worst week since 2016.

Ten-year Treasury yields remained near the highest since 2014 after Federal Reserve officials set the stage for a March interest-rate increase by adding emphasis to their plan for more hikes. German Bund yields also ticked higher.
Investors are weighing the path of U.S. monetary policy at a time of synchronized global growth and a strong expansion in corporate profits that’s helped push global equities to record highs this year and sent government bond yields surging. The changes to the Fed statement acknowledged stronger growth and more confidence that inflation will rise to the 2 percent target.
Elsewhere, oil edged higher after recent declines even as production surged above 10 million barrels a day for the first time in four decades. Gold drifted and Bitcoin traded around $10,000.