Asia Stocks Set to Gain on Trade, Tech; Yen Steady: Markets Wrap

Asian equities were set to climb after results at Apple Inc. emboldened faith in earnings and optimism on global trade lifted industrial companies. Oil declined and the dollar rose.

Equity futures climbed in Japan, Hong Kong and Australia. The S&P 500 Index capped a fourth monthly gain as Boeing Co., Caterpillar Inc. and 3M Co. all added more than 1 percent after Bloomberg’s report that the U.S. and China are trying to restart talks aimed at averting a full-blown trade war. Nasdaq futures climbed and Apple rose more than 3.5 percent, on course for a fresh-record high, building on strength in technology shares during Tuesday trading.

The trade optimism provided relief to investors who have seen the dispute stalled for weeks, with both sides refusing to budge. The next wave of U.S. tariffs is set to kick in as early as Wednesday, with the possible imposition of duties on another $16 billion of Chinese imports. Officials in Beijing have vowed to respond with the same amount of tariffs on U.S. products.

Chipmakers in Asia will be closely watched after Apple projected sales that beat analysts’ estimates. Central banks remain in focus after the Bank of Japan tweaked its policy settings Tuesday, with the Bank of England expected to hike rates Thursday.

Elsewhere, commodities clawed back earlier losses made after China’sofficial factory gauge dropped in July. Crude capped a more than 7 percent drop in July on wagers for higher production. The S&P 500 climbed 3.6 percent in the month, the biggest advance since January.

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Here are some key events coming up this week:

  • The U.S. Treasury is set to release its funding program for the next three months on Aug. 1.
  • Earnings season continues with Berkshire Hathaway, Barclays, Tesla, Toyota, BMW, and Rio Tinto among companies reporting results.
  • Central banks in the U.S., the U.K., Brazil and India all meet this week. The Bank of England is expected to hike even amid Brexit gloom. The Fed is seen standing pat, as is Brazil’s central bank. The RBI will probably raise its benchmark.
  • The U.S. jobs report is on Friday, and is predicted to show a healthy labor market, with 193,000 new jobs, and an unemployment rate slipping back to 3.9 percent.

These are the main moves in markets:

Stocks

  • Futures on Japan’s Nikkei 225 gained 0.4 percent.
  • Futures on Hong Kong’s Hang Seng rose 1.3 percent.
  • Futures on Australia’s S&P/ASX 200 Index advanced 0.3 percent.
  • The S&P 500 Index climbed 0.5 percent at the close of trading in New York.
  • Future on the Nasdaq 100 climbed in the final hour of trading after Apple’s results.

Currencies

  • The yen was at 111.84 per dollar.
  • The offshore yuan as steady at 6.8076 per dollar.
  • The Bloomberg Dollar Spot Index rose 0.1 percent.
  • The euro held at $1.1687.

Bonds

  • The yield on 10-year Treasuries fell one basis point to 2.96 percent Tuesday.
  • Japan’s 10-year yield dipped four basis points to 0.062 percent Tuesday.

Commodities

  • West Texas Intermediate crude decreased 2 percent to $68.76 a barrel.
  • Copper rose 0.8 percent to $6,300 a ton.
  • Gold was flat at $1,224.05 an ounce.

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