Asian equities advanced, Euro to U.S Dollar added 0.1 percent; Here are the main moves in markets
Asian equities advanced, helped by an encouraging start to U.S. earnings season, while Chinese bonds rallied after the nation’s central bank moved to support liquidity. The yen dipped amid a summit between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe.
Stocks gained in Japan, Australia and South Korea. China’s automakers declined after its government moved to allow foreign players take full ownership of their local ventures. The country’s 10-year bond yield fell the most since June after the People’s Bank of China cut the reserve requirement ratio for banks, part of its efforts to support credit amid a crackdown on shadow lending. The yen dropped on early signs that the Trump-Abe summit won’t see new trade demands from the U.S., reducing risk concerns.
With earnings season ramping up, corporate fundamentals are for now overshadowing renewed machinations on the trade front, where China retaliated for the U.S.’s hit on ZTE Corp. with agricultural duties. The S&P 500 Index climbed to the highest in four weeks.
Investor sentiment got a boost from geopolitics, with Trump saying the U.S. and North Korea have already started direct talks at “extremely high levels” in advance of a planned meeting between the two nations’ leaders this summer.
Elsewhere, oil rebounded after U.S. crude stockpiles declined.
Here’s what to watch out for this week:
- Morgan Stanley is among companies reporting results this week.
- The Bank of Canada has a monetary policy decision.
- Finance ministers and central bank chiefs from around the world gather for spring meetings at the IMF in Washington.
Here are the main moves in markets:
- Japan’s Topix index rose 1.1 percent as of 1:29 p.m. in Tokyo.
- Hong Kong’s Hang Seng Index gained 0.3 percent and the Shanghai Composite Index dipped 0.4 percent.
- Australia’s S&P/ASX 200 Index added 0.4 percent.
- The Kospi index rose 1.1 percent.
- S&P 500 futures gained 0.2 percent.
- The Bloomberg Dollar Spot Index was steady.
- The yen declined 0.3 percent to 107.32 per dollar.
- The euro added 0.1 percent to $1.2379.
- The yield on 10-year Treasuries held at 2.83 percent.
- Australia’s 10-year bond yield fell three basis points to 2.73 percent.
- The yield on 10-year Chinese government bonds fell seven basis points to 3.6 percent.
- West Texas Intermediate crude rose 0.5 percent to $66.88 a barrel.
- Gold fell 0.2 percent to $1,344.26 an ounce.