Stocks Climb on Trade Optimism; U.S. Yields Rise: Markets Wrap By Bloomberg

(Bloomberg) — Stocks in Asia climbed and Treasury yields edged higher after China indicated it wouldn’t immediately retaliate against the latest American tariff increase.

Shares climbed across the region on the final trading day of a tumultuous month dominated by the trade war. U.S. equity futures nudged up. Earlier, the S&P 500 Index rose for a second day after a spokesman for China’s commerce ministry said that escalating the conflict won’t benefit either side and that it was more important to discuss removing the extra duties. The dollar held near a two-year high. Japanese bonds slipped after the Bank of Japan cut purchases in its regular operations.

Investor sentiment remains fragile after President Donald Trump’s recent pronouncements on trade and as investors await a resolution. Trump said the U.S. and China were scheduled to have a conversation about trade Thursday. Meanwhile, U.S. economic growth slowed in the second quarter by more than initially reported, on weaker readings for categories including exports and inventories. Still, consumer spending remained robust, topping forecasts.

“The risk of rebuttals or further tit-for-tats has decreased markedly over the last 24 hours,” Kay Van-Petersen, global macro strategist at Saxo Capital Markets, told Bloomberg Radio.

Elsewhere, West Texas crude held above $56 a barrel. Argentina’s long-term foreign currency debt rating was downgraded by S&P Global Ratings, which said the government’s extending maturity of all short-term paper constitutes default. The won held gains after the Bank of Korea kept its key policy rate unchanged at 1.5%, as expected.

Events to keep an eye out for the remainder of this week:

• Euro-zone CPI data for August is also due Friday.

Here are the main moves in markets:

Stocks

• Futures on the S&P 500 Index added 0.2% as of 11:30 a.m. in Tokyo. The underlying gauge increased 1.3% on Thursday.
• Japan’s index advanced 1.1%.
• South Korea’s Kospi added 1.8%.
• Hong Kong’s rose 0.9%.
• The climbed 0.5%.
• rose 0.3%.

Currencies

• The yen was little changed at 106.50 per dollar.
• The dipped 0.2% to 7.1570 per dollar.
• The Bloomberg Dollar Spot Index held steady near the highest since May 2017.
• The euro bought $1.1049.
• The British pound was at $1.2183.

Bonds

• The yield on 10-year Treasuries edged up to 1.52%.
• Australia’s 10-year yield rose one basis point to 0.88%.
• Japan’s 10-year yield added 1.5 basis points to -0.275%.

Commodities

• West Texas Intermediate crude dipped 0.2% to $56.58 a barrel.
• Gold slid 0.2% to $1,523.92 an ounce.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.