US, Asian Stocks Advance as Investors await second-quarter earnings
Asian stocks advanced on Tuesday, after U.S. notched further all-time highs as investors awaited second-quarter earnings season.
Treasury yields were steady after a solid U.S. debt sale.
An MSCI gauge of the region’s stocks rose for a second day. Hong Kong outperformed as Chinese technology shares climbed after government approval of a Tencent Holdings Ltd. deal eased concerns about stricter regulation.
U.S. futures fluctuated after the S&P 500 and tech-heavy Nasdaq 100 closed at new highs. European contracts were little changed.
Investors are also focusing on the U.S. inflation report and Federal Reserve Chair Jerome Powell’s testimony this week as policy makers prepare to discuss tapering stimulus as the economy recovers from the pandemic.
The U.S. Treasury sold $58 billion of three-year notes at yields slightly higher than before the auction. A sale of $38 billion of 10-year notes was greeted by stronger demand.
Expectations for a solid earnings season are underpinning the stock rally, as investors ponder how central banks will unwind the support driving the recovery from the pandemic.
Still, inflationary pressures remain a concern, as does the spread of the delta variant and a slowdown in vaccination rates.
In the Philippines, the peso and stocks declined, and bond spreads widened after Fitch Ratings changed the sovereign credit outlook to negative from stable. Taiwan stocks briefly touched an intraday record high.
Elsewhere, oil rose for the third time in four days as traders grappled with the demand implications of a Covid-19 resurgence in several regions and slowing economic growth in China.
Some events to watch this week:
Bank of America, BlackRock, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley are among firms starting the U.S. earnings season
A closely-watched inflation metric — the June U.S. consumer price index — will offer insight into the inflationary pressures Tuesday
The Reserve Bank of New Zealand’s latest interest rate policy Wednesday
Bank of Korea monetary decision Thursday
China second-quarter GDP, key economic indicators Thursday
Federal Reserve Chair Jerome Powell appears before the Senate Banking Committee to deliver the semi-annual Monetary Policy Report to Congress Thursday
Bank of Japan interest rate decision Friday
These are some of the main moves in financial markets:
Stocks
S&P 500 futures were little changed as of 7 a.m. London. The S&P 500 rose 0.4%
Nasdaq 100 futures were little changed. The Nasdaq 100 rose 0.4%
Topix index gained 0.7%
Australia’s S&P/ASX 200 Index added 0.2%
Kospi index was up 0.8%
Hang Seng Index rose 1.7%
Shanghai Composite Index added 0.3%
Euro Stoxx 50 futures were little changed
Currencies
The Japanese yen was at 110.37 per dollar
The offshore yuan traded at 6.4709 per dollar, up 0.1%
The Bloomberg Dollar Spot Index was steady
The euro traded at $1.1859
Bonds
The yield on 10-year Treasuries edged up to 1.37%
Australia’s 10-year bond yield rose about two basis points to 1.33%
Commodities
West Texas Intermediate crude was at $74.27 a barrel, up 0.3%
Gold was at $1,807.17 an ounce
Bloomberg/Hauwa Abu
