Asian Stocks to Open Higher; Dollar Advances: Markets Wrap

Asian stocks looked poised for gains Tuesday after a technology-fueled rally in the U.S. amid positive economic data and the potential for further stimulus. The dollar climbed.

With investors attuned to any potential for more economic stimulus, U.S. stocks got a boost after the White House was said to be exploring whether President Donald Trump can act on his own to extend enhanced unemployment benefits. A slowdown in the rate of coronavirus infections in a number of states also boosted sentiment.

“Momentum begets more momentum, and the markets have been overbought we believe, but the demand to buy has been there,” said Bob Phillips, managing principal at Spectrum Management Group. “Theres a big desire from both parties to get some kind of stimulus passed. The way the market is reacting, I think the market is expecting that.”

Meanwhile, tension between the U.S. and China continue to simmer. Trump said TikTok will have to close its U.S. operations by Sept. 15 -- unless there‘s a deal to sell the social media network’s American operations.

Elsewhere, oil rose the most in nearly two weeks. Gold was little changed.

Iain Stealey, chief investment officer of fixed income at JPMorgan Asset Management International, discusses where to find value in bond markets.

Source: Bloomberg

Here are some key events coming up:

• Australia interest rate decision due Tuesday.

• Reserve Bank of India and Bank of England rate decisions due Thursday.

• Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.

• July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:

Stocks

• The S&P 500 Index advanced 0.7%.

• Nikkei 225 futures climbed 1%.

• Australias S&P/ASX 200 Index futures rose 1.4%.

• Hang Seng Index futures rose 0.7% earlier.

Currencies

• The fell 0.1% to 106 per dollar.

• The offshore yuan was at 6.9841 per dollar.

• The Bloomberg Dollar Spot Index climbed 0.3%.

• The euro was at $1.1760.

Bonds

• The yield on 10-year Treasuries climbed more than two basis points to 0.55%.

Commodities

• West Texas Intermediate crude rose 1.2% to $40.77 a barrel.

• Gold traded at $1,976.97 an ounce.

• Copper rose 1.6% to $2.9145 per pound.