Asian stocks gain amid Mexico reprieve
Asian stocks, led by Chinese shares, gained on Tuesday as markets basked in relief following the U.S. decision to hold off from imposing import tariffs on Mexico as the two governments agreed a deal to combat illegal migration from Central America.
Hopes that U.S. interest rates will be cut as early as next week also provided support.
U.S. stocks extended their recent climb on Monday, with the Dow rising for the sixth trading day.
Relief that the United States had stepped back from an immediate imposition of tariffs on Mexico encouraged buyers, though U.S. Secretary of State Mike Pompeo warned the United States could still slap tariffs on Mexico if not enough progress was made on its commitment to stem illegal immigration.
- Japan’s Topix index rose 0.5% at the 3 p.m. close in Tokyo.
- Australia’s S&P/ASX 200 Index rose 1.5%.
- South Korea’s Kospi index gained 0.7%.
- Hong Kong’s Hang Seng Index added 0.9%.
- Shanghai Composite Index rose 2.2%.
- S&P 500 futures rose 0.3%. The underlying gauge added 0.5% in New York.
- Euro Stoxx 50 futures rose 0.2%.
- The MSCI Asia Pacific Index climbed 0.7%.
- The yen dipped 0.2% to 108.63 per dollar after sinking 0.2%.
- The offshore yuan rose 0.2% to 6.9301 per dollar.
- The euro was stable at $1.1319.
- The Bloomberg Dollar Spot Index rose 0.1%.
- The yield on 10-year Treasuries held at 2.15%. It climbed almost 7 basis points Monday.
- Australia’s 10-year bond yield was at 1.47%.
Crude oil fell on Monday, with U.S. futures losing 1.3%, as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal and with U.S.-China trade tensions continuing to threaten demand for the commodity.
- U.S. West Texas Intermediate (WTI) crude oil futures were up 0.36% at $53.45 per barrel.
- Gold was little changed at $1,328.81 an ounce after tumbling 1% Monday.