(CEP News) - A sharp rally in U.S. equity markets sent Asia-Pacific stocks soaring while fixed income markets moved lower following comments from Chinese lawmakers expressing concern over the value of U.S. Treasuries.

In the aftermath of a 4% gain in the S&P 500 on Thursday, Sydney’s S&P ASX 200 closed up 109.70 points to 3345.2, the Japanese Nikkei closed higher by 371.03 points to 7569.28 and the Hang Seng up 445.46 points to 12446.99.

Asia Pacific treasuries are also lower after a press conference from Chinese Premier Wen Jiabao saying that he was “worried” about U.S. Treasuries, calling on the United States to maintain good credit and restore its economy.

Jiabao also reiterated his commitment to delivering an 8% growth rate in China for 2009, promising further stimulus if necessary.

Meanwhile Japanese lawmakers threw their support behind the United States on Friday with Prime Minister Taro Aso announcing his intentions to seek further stimulus for the economy.

Yields on Japanese 10-year government bonds are up 0.7 bps to 1.33%, and the Euroyen September 09 contract was down 0.5 ticks to 99.44.

In the absence of any major economic news from Australia, yields on Australian 10-year bonds were up 0.9 bps to 4.28%, yields on three-year Australian bonds up 10.8 bps to 3.53 and the Australian 90-day September 09 contract was down 3.0 ticks to 97.35.

The Australian dollar was down 0.04 cents to 0.6543 against the USD and up 0.05 cents to 0.8371 against the Canadian dollar.

Against the yen, the U.S. dollar was up 0.31 points to 98.03 and the Canadian dollar was up 0.14 points to 76.62.

The euro was down 0.05 cents to 1.2908 USD.

All data taken at 3:56 a.m. EDT.

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Posted in Categories: Australia, Canada, Economy, Eurozone, Japan, Releases, Stocks, USA.

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