Asian Stocks Set for Muted Start; Gold Steadies: Markets Wrap

Asian stocks looked set to for a muted start to trading Tuesday after their U.S. counterparts closed higher on speculation the Federal Reserve will reinforce its dovish message. Gold steadied around an all-time high, while the dollar remained under pressure.

Investors are betting setbacks in the global fight against coronavirus will push Fed Chairman Jerome Powell to signal Wednesday that rates will stay near zero for longer. Infections slowed in California, Arizona and Florida, though reported numbers are often incomplete on weekends. Health officials around the world are also trying to tackle a renewed increase in cases, with surges from China to Spain and Germany underscoring the difficulty of curbing the pandemic.

“We expect no change from the Federal Reserve,” Jeffrey Halley, senior market analyst, Asia Pacific, at Oanda in Singapore, said. “That will reiterate their ultra-dovish stance.”

Elsewhere, oil advanced, erasing earlier losses. Silver futures extended gains.

Here are some key events coming up:

• Earnings include Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, LOreal, Caterpillar, Samsung, Barclays and Credit Suisse.

• The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.

• U.S. second-quarter GDP is expected on Thursday.

• China PMI data comes Friday.

China reported the most domestic coronavirus infections in more than four months as it battles outbreaks in its western and northeastern regions, raising fears of a serious resurgence.

Source: Bloomberg

These are some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.1% as of 7:27 a.m. in Tokyo. The S&P 500 rose 0.7% Monday.

• Nikkei 225 futures rose 0.1%.

• Australias S&P/ASX 200 Index contracts climbed 0.4%.

• Hong Kongs Hang Seng Index futures gained 0.5%.

Currencies

• The yen rose 0.1% to 105.31 per dollar after appreciating 0.7%.

• The offshore yuan was little changed at 6.9982 per dollar.

• Bloomberg Dollar Spot Index sank 0.7% Monday.

• The euro rose 0.1% to $1.1758 after increasing 0.8%.

Bonds

• The yield on 10-year Treasuries increased more than two basis points to 0.62%.

Commodities

• West Texas Intermediate crude climbed 0.1% to $41.64 a barrel.

• Gold climbed 0.1% to $1,944 an ounce after a 2.1% rise Monday.

— With assistance by Rita Nazareth, and Claire Ballentine