The Euro, Japanese Yen and Australia Dollar fell; Asian stocks mixed 

Asian stocks were mixed and crude oil climbed past $70 in New York after President Donald Trump scrapped the nuclear deal with Iran. Treasury yields advanced toward 3 percent, helping stoke gains in the dollar against the yen.

Equity benchmarks in Japan and South Korea dipped, while Hong Kong shares rose. Australian stocks fluctuated after that country’s government announced tax cuts. The S&P 500 Index pared losses to close flat and U.S. futures were steady. West Texas crude rose after a volatile trading session Tuesday as traders digested what the Iran move means for energy supplies. The greenback rose for a fourth session. Indonesia’s rupiah fell to a fresh 29-month low amid concerns about capital outflows from emerging markets.

Concern about an increase in geopolitical tension is weighing on global sentiment at the same time as concerns spread over the implications of higher Treasury yields and a stronger dollar. Sanctions on Iran could potentially disrupt supplies from OPEC’s third-largest producer and open an uncertain new chapter for the Middle East.

“This further example of U.S. isolationism is something that can continue to erode foreign investor enthusiasm for owning U.S. assets over time, if not right here and now,” Ray Attrill, head of foreign exchange strategy at National Australia Bank Ltd. wrote in a note.

Elsewhere, Argentina’s peso pared losses after the government was said to be in talks with the International Monetary Fund for a $30 billion flexible credit line to help defend the currency after it dropped to a record. Italian shares tumbled on the prospect for fresh elections that may boost the chances of a populist government taking power. Turkey’s lira hit another low and the country’s benchmark equity index fell.

Some key events coming up this week:

• Malaysia holds a general election Wednesday.
• Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang on Wednesday.
• The Bank of England decides on policy Thursday.
• U.S. inflation data for April is due the same day.
• Some of the company earnings due include Walt Disney, Petrobras, Marriott, Toyota, Ambev and Deutsche Telekom.

And these are the main moves in markets:

Stocks

• The MSCI Asia Pacific Index fell 0.3 percent as of 1:44 p.m. Tokyo time.
• Topix index sank 0.4 percent.
• Kospi index fell 0.3 percent.
• Australia’s S&P/ASX 200 Index was up 0.2 percent.
• Hong Kong’s Hang Seng Index rose 0.4 percent.
• Futures on the S&P 500 Index were little changed.

Currencies

• The Bloomberg Dollar Spot Index rose less than 0.1 percent.
• The Japanese yen dipped 0.3 percent to 109.49 per dollar.
• The euro fell 0.1 percent to $1.1854.
• The Australian dollar slid 0.2 percent to 74.37 U.S. cents.

Bonds

• The yield on 10-year Treasuries rose about one basis point to 2.99 percent.
• Japan’s 10-year yield rose less than one basis point to 0.054 percent.
• Australia’s 10-year yield jumped five basis points to 2.79 percent.

Commodities

• West Texas Intermediate crude rose 2.3 percent to $70.63 a barrel.
• Gold dipped 0.3 percent to $1,310.92 an ounce.
• LME copper rose 1 percent to $6,814.50 per metric ton.

Source: Bloomberg – Asia Stocks Mixed, Yields Rise, Oil Climbs on Iran: Markets Wrap

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