Tensions between Washington and Beijing remain in focus with China condemning the U.S. for adding 33 Chinese entities to a trade blacklist, but without announcing any retaliatory steps. Meanwhile, China sought to reassure Hong Kong that its judiciary would remain independent under a new national security law.
Cutting against the tensions are mounting signs that coronavirus infection rates are moderating. The Japanese government ended its nationwide state of emergency Monday, while a rise in a gauge of German business expectations provided another glimmer of hope for equity bulls.
Recovery dynamics and potential drug developments are among “the key reasons to be positive,” said Chris Iggo, chief investment officer of core investments at AXA Investment Managers. “That does not mean we should ignore the risk of second waves, prolonged weak growth and geopolitical issues.”
Here are some key events coming up:
- Earnings continue with companies including Nissan Motor, British Land, Royal Bank of Canada and HP Inc.
- Singapore’s parliament on Tuesday is expected to announce another stimulus package.
- Thursday brings the U.S. jobless claims reading for the week ended May 23.
- Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.
These are the main moves in markets:
Stocks
- Japan’s Topix Index rose 1.6% as of 11:56 a.m. in Tokyo.
- Futures on the S&P 500 were up 1.4% from Friday.
- Australia’s S&P/ASX 200 Index gained 1.8%.
- Kospi Index rose 1.3%.
- Hong Kong’s Hang Seng Index rose 1.7%.
- Shanghai Composite Index rose 0.6%.
Currencies
- The Bloomberg Dollar Spot Index was little changed.
- The yen dipped 0.1% to 107.85 per dollar.
- The offshore yuan was little changed at 7.1437 per dollar.
- The euro was little changed at $1.0912.
Bonds
- U.S. 10-year Treasury yields were little changed at 0.67%.
- Australia’s 10-year bond yields were little changed at 0.87%.
Commodities
- West Texas Intermediate crude added 2.5% to $34.09 a barrel.
- Gold was little changed at $1,734 an ounce.