Asia Stocks Set to Gain; U.S. Yields Eye 3% Again: Markets Wrap

Futures tipped Asian stocks to open higher, with strong Alphabet Inc. sales potentially boosting technology shares and rising yields boosting financials. Ten-year Treasuries slipped, pushing yields to the highest in more than a month.

Equity index futures rose in Japan, Australia and Hong Kong. Even so, gains may be kept in check as U.S. futures opened lower in Asia. The S&P 500 Index started the week higher, with financials leading the gainers amid below-average trading volume. Amazon.com pulled consumer discretionary stocks lower after President Donald Trump renewed his public campaign against Jeff Bezos’s Washington Post. Alphabet shares were 3.7 percent higher in after-market trading.

Investors remain skittish after the world’s finance chiefs over the weekend said that while global growth remains robust and many emerging-market countries are better prepared to face crises, risks to the world economy have increased. There are now also concerns that a trade war may spill into currency markets after U.S. President Donald Trump took issue with a slide in the Chinese yuan. The heated rhetoric is offsetting a mixed earnings season just as the summer lull is keeping trading volumes thin.

Elsewhere, West Texas crude see-sawed as Trump’s warnings to his Iranian counterpart were offset by a strengthening dollar. Emerging-market stocks were little changed. Bitcoin pushed higher.

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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, AT&T, Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel. They are joined by global financial giants Deutsche Bank, UBS, Nomura and Visa. Others include Halliburton, Michelin, Boeing, Lockheed, Nissan and Shell.
  • Pakistan holds national elections Wednesday.
  • European Central Bank’s policy decision Thursday.
  • U.S. gross domestic product probably increased by about 4 percent at an annualized rate in the second quarter, the most since 2014, economists forecast ahead of Friday’s data.

Terminal users can follow our Markets Live blog here.

These are the main moves in markets:

Stocks

  • Futures on the Nikkei 225 Stock Average gained 0.2 percent in Singapore.
  • Futures on Australia’s S&P/ASX 200 Index climbed 0.3 percent.
  • Hong Kong’s Hang Seng Index futures rose 0.2 percent.
  • S&P 500 Index futures were little changed as of 7:09 a.m. in Tokyo. The underlying measure closed 0.2 percent higher on Monday. Nasdaq 100 Index futures dipped.

Currencies

  • The Japanese yen was little changed at 111.32 per dollar.
  • The offshore yuan fell 0.1 percent to 6.8149 per dollar.
  • The euro traded at $1.1693.
  • Bloomberg Dollar Spot Index advanced 0.1 percent.

Bonds

  • The yield on 10-year Treasuries gained six basis points Monday, to 2.96 percent, the highest in more than a month.

Commodities

  • West Texas Intermediate crude was little changed at $67.85 a barrel after falling 0.5 percent.
  • Gold was steady at $1,224.97 an ounce after dropping 0.4 percent.

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