Asia Stocks Point to Gains; Treasuries Steady: Markets Wrap

Asian stocks look set for a higher start after another bout of strong earnings results buoyed U.S. equities. Treasuries were steady and the dollar slipped.

Futures signaled gains for equities in Japan, Hong Kong and Australia. The S&P 500 Index rose for the second straight day as positive earnings news overcame traders’ anxieties about simmering trade disputes. The focus will be back on Chinese equities, where the Shanghai Composite ratcheted up its biggest three-day gain in more than two years. Treasury yields held at 2.95 percent on the 10-year note and oil climbed on stockpiledecreases.

China’s moves to shore up growth amid the rumbling trade war is helping to improve sentiment in its beaten down equity market. More earnings will roll in as the week grinds on, while the path of monetary policy is also in focus as the European Central Bank meets to decide interest rates.

Elsewhere, Turkey’s lira sank as the nation’s central bank unexpectedly held rates on Tuesday, fueling fears that monetary policy under President Recep Tayyip Erdogan’s watch will remain too loose to contain price pressures. Sterling climbed after Prime Minister Theresa May took control of Brexit talks, relegating the Brexit Department.

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Here are some key events coming up this week:

  • Earnings season continues with the following tech companies among those reporting: Facebook, Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel. They are joined by global financial giants Deutsche Bank, Nomura and Visa. Others include Nissan and Shell.
  • Pakistan holds national elections Wednesday.
  • The European Central Bank’s policy decision is Thursday.
  • U.S. gross domestic product probably increased by about 4.2 percent at an annualized rate in the second quarter, the most since 2014, economists forecast ahead of Friday’s data.

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These are the main moves in markets:

Stocks

  • Futures on Japan’s Nikkei 225 rose 0.1 percent.
  • Futures on Hong Kong’s Hang Seng gained 0.9 percent.
  • Futures on Australia’s S&P/ASX 200 Index advanced 0.3 percent.
  • The S&P 500 Index rose 0.5 percent.

Currencies

  • The yen was steady at 111.21 per dollar.
  • The offshore yuan held at 6.8103 per dollar.
  • The Bloomberg Dollar Spot Index declined 0.1 percent on Tuesday to its lowest in a week.
  • The euro bought $1.1683.
  • The British pound traded at $1.3146 after rising 0.3 percent.
  • The Turkish lira fell 3 percent to 4.887 per dollar.

Bonds

  • The yield on 10-year Treasuries held at 2.95 percent.

Commodities

  • West Texas Intermediate crude rose 1.3 percent to $68.76 a barrel.
  • Gold was flat at $1,224.70 an ounce.
  • The Bloomberg Commodity Index increased 0.5 percent on Tuesday.

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