(Bloomberg) -- Asian stocks looked set to extend a rally in the wake of the latest salvos in the trade war that look likely to be less intense than many had feared. Treasuries held losses and the dollar remained steady.

Futures signaled gains for equities in Japan and China, building on an advance that began in Asia Tuesday and extended into the U.S. session. That’s despite the U.S.-China trade war deepening as Beijing announced retaliatory tariffs on $60 billion of U.S. goods and the Trump administration threatened duties on virtually all Chinese imports. Commodities also rallied. The yen was steady before the Bank of Japan concludes its meeting that will likely see policy left unchanged, keeping monetary stimulus in place.

The threat to global growth remains, though investors have now had months to take a view on the trade war and many assets are pricing in rising tensions, helping to cushion the impact from the latest blows. The S&P 500 Index registered its biggest gain in almost three weeks, led by technology stocks, which had been hammered in Monday’s session. Treasuries declined, pushing the yield on 10-year U.S. bonds above 3 percent, as most European government bonds drifted lower.

Elsewhere, oil jumped after Saudi Arabia expressed comfort with Brent oil prices rising above $80 a barrel. West Texas crude briefly breached $70 a barrel.

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Here are some key events coming up this week:

  • Japanese trade-flow numbers are due on Wednesday.
  • The Bank of Thailand decides on policy Wednesday.
  • Britain releases inflation data on Wednesday.
  • European PMIs are due on Thursday.
  • The Organization of Petroleum Exporting Countries and its allies meet in Algiers this weekend.

These are the main moves in markets:

Stocks

  • Futures on Japan’s Nikkei 225 rose 1.5 percent in Singapore.
  • FTSE China A50 futures advanced 0.7 percent.
  • Futures on Hong Kong’s Hang Seng Index gained 0.5 percent.
  • Futures on Australia’s S&P/ASX 200 Index rose 0.5 percent.
  • The S&P 500 Index climbed 0.5 percent.
  • The MSCI Emerging Market Index rose 0.3 percent.

Currencies

  • The yen was steady at 112.37 per dollar after slipping 0.5 percent.
  • The offshore yuan was flat at 6.8610 per dollar.
  • The Bloomberg Dollar Spot Index advanced 0.1 percent Tuesday.
  • The euro bought $1.1669.

Bonds

  • The yield on 10-year Treasuries jumped six basis points to about 3.05 percent, the highest in almost four months.

Commodities

  • West Texas Intermediate crude climbed 1.4 percent to $69.85 a barrel.
  • LME copper gained 2.4 percent to $6,086 a metric ton.
  • Gold was little changed at $1,198.39 an ounce.

--With assistance from Ken Wang, Amanda Wang and Cindy Wang.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea Papuc

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