Asian Stocks Set to Rise With U.S. at Record Highs: Markets Wrap

Andreea Papuc, Bloomberg News

BC-Asian-Stocks-Set-to-Rise-With-US-at-Record-Highs-Markets-Wrap , Andreea Papuc

(Bloomberg) -- Asian stocks looked set for gains Tuesday after U.S. equities hit new highs as the partial trade deal with China alleviated a key risk for investors heading into year-end. Treasuries and the dollar fell.

Futures pointed higher in Japan, Australia and Hong Kong. The S&P 500 Index climbed Monday in the wake of the agreement and on signs of improving business sentiment. The yen dipped amid the risk-on mood, and the offshore yuan extended an advance.

Investor sentiment has been given a boost by the announcement of the trade deal which staved off a Dec. 15 tariff hike -- a prospect that had loomed large for markets. Still, it remains unclear how China will follow through on pledges to boost American agricultural imports, or how quickly the U.S. promise to roll back half of a September tariff hike will happen.

Meanwhile, the Federal Reserve Bank of New York’s gauge of general business conditions in the next six months jumped to a five-month high, adding to the positive mood.

Elsewhere, oil hovered near a three-month high. Bitcoin slipped below $7,000. The Stoxx Europe 600 also hit a new peak and the U.K.’s FTSE 100 Index reached a 19-week high.

Here are some key events to watch for this week:

Policy decisions are due Thursday from the Bank of Japan and the Bank of England.
Federal Reserve district bank presidents including Robert Kaplan of Dallas, Eric Rosengren of Boston and John Williams of New York are scheduled to speak this week.
Revised U.S. GDP data are due Friday.
Friday brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

Stocks

Nikkei 225 futures rose 0.5%.
Australia’s S&P/ASX 200 Index futures gained 0.4%.
Hong Kong’s Hang Seng Index futures added 0.5%.
The S&P 500 Index gained 0.7%.

Currencies

The yen depreciated 0.2% to 109.58 per dollar, the weakest in almost seven months.
The offshore yuan rose 0.3% to 6.9917 per dollar.
The Bloomberg Dollar Spot Index declined 0.2%, the lowest in five months.
The euro climbed 0.2% to $1.1144.
The British pound increased 0.1% to $1.3341.

Bonds