Asia's emerging stock markets made small gains on Thursday, supported by surveys showing higher production across Asia's factories last month, and the filip given to Wall Street by the US government's $2 trillion spending plan.
Gains throughout the region were capped at around half a percent with stocks in Taiwan, Malaysia and South Korea leading the way ahead of a long weekend for many.
"With much of Asia Pacific on holiday tomorrow, activity is somewhat muted," said Jeffrey Halley, a senior market analyst for Asia Pacific at OANDA.
The US plan, outlined by President Joe Biden on Wednesday, follows the recent $1.9 trillion pandemic relief package, and if passed would add further fuel to the US economy.
Uncertainty around its passing, however, kept already elevated US 10-year bond yields from pushing much higher and Asia's emerging currencies were flat to slightly higher.
The pressure on the region's risk-sensitive currency and bond markets is unlikely to abate, though, as the US economy looks set to outpace the global recovery thanks as the coronavirus vaccination campaign restores confidence and cheap money is likely to be available for some time.
A poll by Reuters found that battered emerging market currencies will only pare some of their recent steep losses over the coming year, with those analysts adding that the sell-off was likely in the next three months.
The rupiah, one of the highest yielders in emerging markets, lost as much as 0.5% before recovering slightly as trading went on. Stocks were down around a quarter of a percent.
Indonesia raised 15.02 trillion rupiah from an additional bonds auction on Wednesday. Recent auctions have been weak due to higher US yields, driving capital away from emerging markets.
"The amount of the latest conventional bonds sold was still below target. If there is no turnaround in bond market sentiment over the next few weeks, the government probably needs to embrace the higher funding costs," OCBC bank analysts said.
Surveys showing Asia's factories stepped up production in March also supported sentiment.
Markets in the Philippines were closed. Most markets across Asia will be shut on Friday.