Asia stocks push higher; dollar recovers, yen dips: markets wrap

Asian stocks extended Monday’s advance after US equities climbed to fresh all-time highs, as the Trump administration said it was negotiating a bilateral trade deal with Mexico. The dollar recovered against major peers and the yen slipped.

Stocks in Japan, Hong Kong and Australia gained, while Chinese shares under-performed. Earlier, US equities ended higher after President Donald Trump unveiled details of the agreement that he says will replace Nafta.

The Mexican peso fell after initially rallying on the news as investors clamored for details of any pact and clarity on where it leaves Canada. Treasury yields ticked higher and US futures pointed to modest gains. The yuan dipped in the offshore market and oil pulled back under $69 a barrel.

Stocks have been testing fresh highs since comments from Federal Reserve Chairman Jerome Powell eased concerns that the pace of US interest rate increases will stymie growth in the world’s biggest economy. The breakthrough on trade with Mexico also captured investor attention amid yet another failure for US and China trade talks.

Elsewhere, Turkey’s lira added to a decline on Monday when the country’s markets reopened following a holiday.

Here are some key events coming up this week:

Earnings are due from companies including Canada’s largest banks and China Construction Bank Corp, ICBC, Pernod Ricard and Dollar General. China’s official factory PMI are due on Friday. The US economy probably grew in the second quarter at a slightly slower pace, economists predict ahead of Wednesday’s report. The Bank of Korea sets policy on Friday. Weak jobs growth has cooled speculation of an interest-rate increase.

These are the main moves in markets:

Stocks

Japan’s Topix index rose 0.4% as of 13:55 in Tokyo. Kospi index rose 0.2%. Australia’s S&P/ASX 200 Index rose 0.6%. Hong Kong’s Hang Seng Index gained 0.2%. Futures on the S&P 500 Index were little changed. The MSCI Asia Pacific Index added 0.4%.

Currencies

The Japanese yen fell 0.2% to 111.26/$. The offshore yuan fell 0.3% to 6.8104/$. The euro traded at $1.1673. The Bloomberg Dollar Spot Index rose 0.1%. The Mexican peso fell 0.4% after advancing 0.8% on Monday. The Turkish lira fell 0.9%, extending a 1.9% slide.

Bonds

The yield on 10-year Treasuries was little changed at 2.85%. Australia’s 10-year yield gained three basis points to 2.57%.

Commodities

West Texas Intermediate crude was steady at $68.85 a barrel. Gold fell 0.1 percent to $1 209.78 an ounce. LME copper declined 0.5% to $6 075.50 per metric ton.