Most Asian stocks dipped, Gold lost 0.3 percent, Euro fell; Early investors review 

Asia Markets

Most Asian stocks dipped in a holiday-hit trading session Tuesday, with the dollar and U.S. Treasuries little changed as crude oil held around its highest New York level since 2014.

Companies selling baby products saw gains after news that China plans to abandon its policy on childbirths, though the advances weren’t enough to hold up domestic Chinese equity benchmarks. Japan’s Topix Index edged lower, while Australian shares fell. Without fresh news on U.S.-China trade talks, investors may turn their attention later this week to minutes of the Federal Reserve’s May policy meeting for clues on the likely number of interest-rate hikes remaining this year.

While the S&P 500 Index climbed overnight thanks to easing trade tensions, that optimism appeared to have played out by the time Asian trading began Tuesday. Hong Kong and South Korean markets are shut for Buddha’s Birthday.

“Markets are going through a bumpy ride,” Bank of Singapore Investment Strategist James Cheo said on Bloomberg Television. “This trade truce is still in the early days. It’s really a ceasefire, it’s not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors.”

Plenty of other topics may capture investors’ attention. Along with the Fed, the European Central Bank is releasing its latest meeting minutes, and there is a slew of debt sales from the U.S. On the geopolitical front, U.S. President Donald Trump meets South Korea President Moon Jae-in in Washington to coordinate their approach to North Korea, while Brexit negotiations are ongoing.

Elsewhere, pressure on emerging-market currencies eased as the dollar stalled, with the Malaysian ringgit and the Indonesian rupiah heading up. In Europe, Italian stocks sank and bond yields soared Monday amid growing concern over the populist coalition’s fiscal plans. Even so, contagion to the euro was limited, as the currency was steady after nudging higher Monday for the first time in six days.

These are some key events to watch this week:

  • Brexit negotiations resume in Brussels Tuesday, and South Korea’s president visits Washington to discuss North Korea.
  • Also Tuesday, Facebook Chairman and CEO Mark Zuckerberg is to be questioned by the European Parliament on his company’s use of personal data.
  • The Federal Reserve releases minutes of the central bank’s May 1-2 meeting on Wednesday; U.S. new home sale also released as are euro-area and Japan PMIs.
  • Thursday sees the Bank of England Markets Forum at Bloomberg London. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley.
  • At the St. Petersburg Forum Friday, Russian President Vladimir Putin and French President Emmanuel Macron, IMF Managing Director Christine Lagarde, and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News Editor-in-Chief John Micklethwait.
  • Also Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.

These are the main moves in markets:

Stocks

  • Topix index was down 0.3 percent as of 2:07 p.m. in Tokyo.
  • Australia’s S&P/ASX 200 Index fell 0.8 percent.
  • Shanghai Composite Index fell 0.4 percent.
  • S&P 500 Index futures were steady. The S&P 500 rose 0.7 percent Monday.

Currencies

  • The Bloomberg Dollar Spot Index fell was flat.
  • The euro fell 0.1 percent to $1.1775.
  • The British pound was at $1.3416, near the low for the year reached Monday.
  • The Japanese yen rose 0.1 percent to 110.95 per dollar, still holding around its weakest since January.

Bonds

  • The yield on 10-year Treasuries fell less than one basis point to 3.0523 percent.
  • Australia’s 10-year bond yield fell two basis points to 2.87 percent.

Commodities

  • West Texas Intermediate crude gained 0.3 percent to $72.46 a barrel, climbing for a second day.
  • Gold lost 0.3 percent to $1,289.43 an ounce.
  • LME copper was steady at $6,881 a metric ton.

Source: Bloomberg – Asian Stocks Edge Lower, Oil Hovers Near 2014 High: Markets Wrap

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