Asian stocks advanced, oil price declined, gold traded around the lowest in a year 

Asian stocks advanced after an upbeat assessment on the U.S. economy from Federal Reserve Chairman Jerome Powell comforted investors wary of a blowout in protectionism.

Equities climbed from Tokyo to Sydney and U.S. futures edged up after the Nasdaq Composite Index hit a record high despite disappointing subscriber numbers from Netflix Inc. The dollar climbed to a six-month high against the yen as it held gains after Powell told a Senate committee that the Fed will continue to gradually raise interest rates “for now,” suggesting no iron-clad plan to keep tightening through next year.

Earnings and U.S. monetary policy have become the main drivers of market sentiment this week. That’s giving respite from a worsening in trade relations between the world’s biggest economic powers. Company results have been mixed thus far, with Deutsche Bank AG and Bank of America Corp. beating estimates, counterbalancing the Netflix reading.

Powell addressed Congress with the underpinnings of the U.S. expansion looking solid. Unemployment stands close to an 18-year low and inflation is around the Fed’s 2 percent target, though some sentiment indicators are starting to flash warning signs over escalating trade disputes. He will appear before the House Financial Services Committee Wednesday.

Elsewhere, oil declined after an industry group reported a surprise increase in U.S. crude inventories. Gold traded around the lowest in a year as its safe haven appeal was eroded by the strong outlook for the U.S. economy. Asian emerging-market currencies declined, led by the won and rupiah.

These are some key events coming up this week:

• Earnings season continues, with reports due from companies including: Morgan Stanley, American Express, Microsoft, Taiwan Semiconductor Manufacturing, Unilever and IBM.
• Euro-zone inflation data for June is expected on Wednesday to show the annual rate inched higher to 2 percent.

These are the main moves in markets:

Stocks

• Japan’s Topix index rose 0.6 percent as of 12:54 p.m. in Tokyo.
• Australia’s S&P/ASX 200 Index gained 0.7 percent.
• South Korea’s Kospi index was up 0.2 percent.
• Hong Kong’s Hang Seng Index advanced 0.3 percent.
• The Shanghai Composite Index gained 0.5 percent.
• Futures on the S&P 500 Index rose less than 0.1 percent. The S&P 500 rose 0.4 percent.
• The MSCI Asia Pacific Index climbed 0.4 percent.

Currencies

• The Japanese yen fell less than 0.1 percent to 112.94 per dollar, trading around its weakest since January.
• China’s yuan traded at $6.7226.
• The euro was at $1.1655.

Bonds

• The yield on 10-year Treasuries rose one basis point to 2.87 percent.
• Australia’s 10-year bond yield fell one basis point to 2.65 percent.

Commodities

• West Texas Intermediate crude fell 0.5 percent to $67.75 a barrel.
• Gold was little changed at $1,227.92 an ounce. Earlier it fell more than 1 percent.

Source: Bloomberg – Asian Stocks Gain After Fed; Dollar Holds Advance: Markets Wrap

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