Stocks Advance As U.S. Tariff Worries Set Aside: Markets Wrap
Asian stocks halted a five-day slump and U.S. futures rose as President Donald Trump held out the possibility of a trade deal with China even as his administration prepares for a possible expansion in tariff hikes on the country.
The trade outlook again captured investors’ attention after Bloomberg reported that the U.S. is preparing to put tariffs on all Chinese imports if Trump’s meeting with President Xi Jinping next month fails to ease the trade war. Stocks opened lower in Asia after another decline in the U.S. Monday. Later, Trump said a “great deal” is what’s needed with China, given its surpluses with the U.S., in remarks that prompted a turnaround in Asian markets. The yen slid and Aussie rose, helping stoke Japanese and Australian shares. China’s stocks climbed after authorities said they’d encourage long-term funds to invest.
The yuan was little changed after earlier hitting its weakest against the greenback in a decade, while Hong Kong shares underperformed. Ten-year Treasury yields ticked back up to 3.10 percent as a risk-on mood took hold in the Asian afternoon. With the MSCI World Index of stocks more than 9 percent this month, some investors may be opting to jump back into equities given expectations for continued economic expansions in all major economies into next year.
Along with corporate earnings releases, U.S.-China trade talks are set to be a focus for investors in coming weeks, with a looming Trump-Xi meeting at the G-20 summit scheduled for next month in Buenos Aires. Trump, in an interview with Fox News late Monday, said: “I think we will make a great deal with China, and it has to be great because they’ve drained our country.”
Elsewhere, oil held losses and traded near $ 67 a barrel in New York. The euro halted losses following news Monday that German Chancellor Angela Merkel has planned her exit from leadership of Europe’s top economy.
Here are some key events coming up this week:
Highlights from earnings season will : Facebook (FB), Komatsu (KMTUY), Ping An Insurance (PNAGY), PetroChina (PTR), Macquarie (MIC), Apple (AAPL), Alibaba (BABA), China Telecom (CHA), Fanuc, GE (GE), Airbus (EADSY), Credit Suisse (CS), Exxon Mobil (XOM), Shell (SHLX) and BP (BP). Monetary policy decisions are due in Japan and the U.K. On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved as payrolls rose about 190,000, and the unemployment rate held at a 48-year low of 3.7 percent, analysts forecast.
And these are the main moves in markets:
Japan’s Topix index increased 1.4 percent at the 3 p.m. close in Tokyo. Hong Kong’s Hang Seng Index fell 0.7 percent. South Korea’s Kospi index rose 0.9 percent. Australia’s S&P/ASX 200 Index jumped 1.3 percent. Futures on the S&P 500 Index rose 0.6 percent. The MSCI Asia Pacific Index added 0.6 percent.
The Japanese yen fell 0.3 percent to 112.74 per dollar. The offshore yuan rose 0.1 percent to 6.9708 per dollar. The euro was flat at $ 1.1374. The Bloomberg Dollar Spot Index rose less than 0.1 percent after advancing 0.6 percent Monday.
The yield on 10-year Treasuries increased two basis points to 3.10 percent. Australia’s 10-year yield rose one basis point to 2.58 percent.
West Texas Intermediate crude rose 0.2 percent to $ 67.19 a barrel. Gold fell 0.2 percent to $ 1,227.23 an ounce. LME copper fell 0.5 percent to $ 6,129.50 per metric ton.