Asian stocks rose; optimism about US-China trade war
Asian stocks rose in step with their global peers while safe-haven bonds retreated on Tuesday, as signs Sino-U.S. trade hostilities might be easing for now helped restore investor confidence after the previous session’s rout.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3% after dropping 1.3% the previous day.
- The Shanghai Composite Index advanced 1%.
- South Korea’s KOSPI added 0.8% and Japan’s Nikkei rose 1.1%.
- The dollar index versus a basket of six major currencies stood at 97.990, having risen about 0.5% overnight.
- The euro was flat at $1.1100 after losing 0.4% on Monday.
- The Australian dollar, sensitive to developments in China, Australia’s largest trading partner, dipped 0.25% to $0.6758, handing back most of Monday’s gains.
- The benchmark 10-year U.S. Treasury yield was at 1.523%, pulled back from a three-year low of 1.443% reached on Monday on the back of wide-spread risk aversion.
- The Japanese 10-year government bond yield was up 2.5 basis points at minus 0.255% after plumbing minus 0.285% on Monday, its lowest since July 2016
Crude oil prices recovered some ground as the broader markets stabilized
- Brent crude futures were up 0.53% at $59.01 per barrel after losing 1% the previous day.
- U.S. crude rose 0.62% to $53.97 per barrel.