Main moves in markets: Asian stocks mixed, Yen was little changed, Euro was up, Pound was flat 

Asian stock benchmarks were mixed amid growing optimism that U.S. legislators are on the brink of passing sweeping tax cuts.

Benchmarks in Japan and South Korea were down while stocks in Sydney, Hong Kong and China advanced after U.S. gauges climbed to fresh records. The yen was little changed, as was the dollar. South Africa’s rand reached its strongest since March as Cyril Ramaphosa won the ruling African National Congress party’s leadership contest. Australian bonds fell after the minutes of the central bank’s December meeting signaled increased confidence that the economy will strengthen next year, laying the ground for a potential interest rate hike in 2018. Ten-year U.S. yields were flat.

Republican Senator Susan Collins of Maine said she’ll back the GOP tax bill, virtually ensuring her party has the numbers necessary to pass the legislation. The House is scheduled to vote Tuesday on the tax bill following a floor debate that morning. It then goes to the Senate, where Republican leaders intend to bring it up as soon as they get it.

“Equity markets have started the week in an extremely enthusiastic manner anticipating tax reform holiday cheer,” said Stephen Innes, a senior FX trader at Oanda. “There’s a definite buzz on the street as we approach the finishing line as there are few if any signs of buyer fatigue.”

Sterling was steady after advancing on Monday as U.K. Prime Minister Theresa May addressed parliament about her plans for Brexit. The euro was little changed. Bitcoin was hovering below $19,000 after futures debuted Monday on the CME Group Inc.’s venue, the world’s biggest exchange.

Among the key events investors will be watching this week:

• The U.S. and U.K. publish updated estimates of third-quarter GDP.
• The Bank of Japan meets to set monetary policy on Thursday.

And these are the main moves in markets:

Stocks

• Japan’s Topix Index and the Nikkei 225 Stock Average were both down 0.2 percent at the close in Tokyo.
• Hong Kong’s Hang Seng Index rallied 0.8 percent, while the Shanghai Composite Index was up 0.5 percent.
• South Korea’s Kospi index was down 0.2 percent.
• Australia’s S&P/ASX 200 Index was up 0.5 percent.
• Futures on the S&P 500 Index were little changed after the underlying gauge rose 0.5 percent to a record 2,690.16.

Currencies

• The Bloomberg dollar index was little changed.
• The yen was little changed at 112.60 per dollar.
• The euro was up 0.1 percent at $1.1793.
• The pound was flat at $1.3383 after advancing 0.5 percent Monday.

Bonds

• The yield on 10-year Treasuries was little changed at 2.40 percent.
• Australia’s 10-year yield rose four basis points to 2.57 percent.

Commodities

• West Texas Intermediate crude was up 0.3 percent at $57.32 a barrel.
• Gold was at $1,263.21 an ounce.

Source: Bloomberg – Asian Stocks Trade Mixed, Yen and Dollar Steady: Markets Wrap

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