HONG KONG (Reuters) - Asian stocks opened higher on the back of a strong Wall Street with markets discounting the potential impact of Italy's referendum vote, while U.S. Treasury yields firmed as robust economic data pointed to an interest rate hike next week.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> rose 0.4 percent in early trade with Antiopodean markets leading gains. Korea <.KS11> climbed 1 percent in opening trades.
Wall Street rose on Monday, with the Dow Jones industrials setting fresh record highs following services sector data that showed further strength in the domestic economy.
U.S. services sector activity hit a one-year high in November, with a surge in production boosting hiring, following on the heels of Friday's employment report that showed strong job gains last month.
The data pushed short-dated Treasury yields higher with two-year benchmark yields stabilizing near the 1.13 percent level, not far from a six-year high of 1.17 percent tested in late November as markets have baked in the probability of a rate increase by the U.S. Federal Reserve next week.
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Still, higher stocks and firmer short-dated Treasury yields projected a more optimistic backdrop for risk appetite than Monday when Asian markets plunged as investors worried the euro-zone may be heading for a fresh crisis after the Italian vote.
That lift in sentiment pushed the prices of relative safe-haven assets such as gold and Japanese yen > lower.
Spot gold > fell by as much as 1.6 percent to its lowest since early February at $1,157 an ounce, before bouncing somewhat.
(Reporting by Saikat Chatterjee; Editing by Eric Meijer)
Disclaimer: No Business Standard Journalist was involved in creation of this content
