Yen and British pound were flat, Gold little changed; Japan stocks climb 

Japan Stocks Climb on Yen Losses; Brazil ETF Rises

• Oil holds gains while trader triggers sharp drop in gold price
• Investors await Yellen remarks before further data this week

Most Asian stocks advanced as a weaker yen spurred gains in Japanese shares ahead of an appearance by Federal Reserve Chair Janet Yellen. Oil held gains after a three-day rebound.

Japan’s Topix was up for a third day, with the yen holding Monday’s losses against the dollar. South Korean retailers jumped as consumer confidence reached a six-year high. A Brazilian equities fund climbed in Tokyo trading after Brazil’s President Michel Temer was charged with corruption. Treasuries advanced in the Monday session after an unexpected decline in U.S. orders for business equipment. Gold piqued the interest of market watchers after an apparently erroneous order triggered a plunge in the price and a surge in volume.

The weakness in U.S. durable goods data added to concerns about the strength of economic growth after the recent rout in the oil market and signs that inflation is trailing expectations. Some investors worry the Fed is taking too rosy a view of the economy as it sets the path for further interest-rate increases.

With little data on the calendar Tuesday, investors will focus on an address by Yellen and a continuation of the European Central Bank’s forum in Portugal for clues on policy. The durable goods reading comes ahead of a slew of reports due later this week from China, the U.S. and Japan — covering everything from inflation to employment, manufacturing and housing.

Brazil’s Michel Temer was charged with corruption by the chief prosecutor on Monday evening, in a highly anticipated development that may put the embattled president of Latin America’s largest economy on trial. Temer, who has denied the charges, could lose his job if indicted and found guilty. Read more here on how that may play out.

India and Singapore reopened after holidays while markets in Malaysia, Indonesia and most of the Middle East remain closed.

Here are some important upcoming events:

• The Bank of England’s Financial Policy Committee releases its stability report on Tuesday and Governor Mark Carney holds a press conference.
• The Federal Reserve is set to announce the results of the second part of its annual U.S. bank stress test on Wednesday.
• China’s PMI might have declined in June after unexpectedly remaining unchanged in May, reflecting government offers to cut overcapacity and leverage. That reading is due Friday.
• Also slated this week: Japanese inflation, factory output, unemployment, household consumption and housing starts.

These are the main moves in markets:

Stocks

• Japan’s Topix climbed 0.5 percent as of 12:57 p.m. in Tokyo, poised for the highest closing level since August 2015.
• Australia’s S&P/ASX 200 Index slipped 0.1 percent and Singapore’s Straits Times Index increased 0.4 percent.
• South Korea’s Kospi added 0.3 percent, with E-Mart Inc. and Lotte Shopping Co. advancing more than 4 percent. Consumer confidence rose to the highest since January 2011 as exports grow and the new president’s policies on job creation spur optimism.
• Hong Kong’s Hang Seng rose 0.1 percent and the Shanghai Composite Index retreated 0.1 percent.
• The NEXT FUNDS Ibovespa Linked Exchange Traded Fund, which tracks the Brazilian benchmark index, rose 1.2 percent in Tokyo trading.
• Futures on the S&P 500 Index were little changed. The underlying gauge rose less than one point on Monday. The Nasdaq 100 fell 0.4 percent.

Currencies

• The yen was flat at 111.89 per dollar, after losing 0.5 percent on Monday. The Bloomberg Dollar Spot Index was little changed after gaining 0.1 percent in the previous session.
• The British pound was virtually unchanged at $1.2726. The euro rose less than 0.1 percent to $1.1191.

Commodities

• West Texas Intermediate crude rose 0.3 percent to $43.50 a barrel, after a three-day rally following oil’s drop into a bear market.
• Gold was little changed at $1,244.82 an ounce. The precious metal sank almost 1 percent on Monday. Read more on the tumultuous events in that market from Monday.

Bonds

• The yield on 10-year Treasuries was little changed at 2.14 percent, after dropping less than one basis point on Monday.
• Australian 10-year yields dropped two basis points to 2.36 percent.

Source: Bloomberg – Japan Stocks Climb on Yen Losses; Brazil ETF Rises: Markets Wrap

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