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Sydney - Stocks climbed in Asia after Japanese corporate earnings, Chinese manufacturing and South Korean export data reinforced confidence in global growth.
Equity indexes from Tokyo to Sydney gained with raw-material producers adding to the recent rally. West Texas Intermediate crude traded above $50 a barrel for the first time since May and copper was at a two-year high.
The Australian dollar fell below 80 US cents, before recovering, after the central bank left rates unchanged and said the higher exchange rate is expected to contribute to subdued price pressures.
The dollar held onto declines triggered by fresh political turmoil in Washington.
Global equities remain near all-time highs, with data this week from China and Japan reinforcing optimism for growth after figures on Friday showed the US economy accelerating in the second quarter.
South Korea’s exports jumped 20% in July from a year earlier, topping expectations, as strong global demand continues to underpin the nation’s economy.
Washington remains a fixation of traders, with President Donald Trump ousting communications director Anthony Scaramucci after just 10 days on the job.
The Reserve Bank of Australia held the benchmark at 1.5% while warning that a rising currency is expected to subdue inflation and weigh on the outlook for growth and employment. Read more here about the RBA’s decision.
Meanwhile, the slew of corporate earnings continues. Mitsubishi UFJ Financial Group, Apple, Tesla, Berkshire Hathaway and Toyota Motor are all set to unveil results this week.
Here are some key upcoming events:
There’s a stack of data on the US economy due this week. Highlights include jobs data that probably show employers added about 180 000 workers in July. That’s Friday.
Also watch out for manufacturing and automaker data on Tuesday. Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial.
The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25%. Rate decisions are due in India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday).
Stocks
Japan’s Topix index added 0.5%. Banks advanced after Sumitomo Mitsui Financial Group reported a 31% increase in net income for the June quarter, while Nitto Denko raised its net-income forecast after first-quarter earnings beat estimates.
Australia’s S&P/ASX 200 Index was up 0.7%. South Korea’s Kospi index added 1.1%. The Hang Seng Index in Hong Kong rose 0.8%, while the Shanghai Composite Index climbed 0.4%.
Futures on the S&P 500 were up 0.2% as of 12:43pm in Tokyo after the underlying gauge slipped 0.1% on Monday, posting a third day of losses. A low-volume US session saw the S&P 500 Index fluctuate, while the Dow Jones Industrial Average eked out a fresh record high.
The MSCI Asia Pacific Index climbed 0.7% after it advanced for a seventh month in July.
Currencies
The Bloomberg Dollar Spot Index was little changed. It fell 0.3% on Monday to complete its fifth-straight monthly drop. The euro slipped 0.1% to $1.1826 after surging 0.8% on Monday. The yen rose 0.1% to 110.16 per dollar, having climbed 1.9% in July.
Bonds
The yield on 10-year Treasuries was steady at 2.30%. The Australian 10-year government note saw yields at 2.71%.
Commodities
West Texas Intermediate crude added 0.2% to $50.28 a barrel, following six days of gains.
Copper rose 0.2% to $6 379.50 a metric tonne, extending a gain on Monday when the metal capped its biggest monthly advance since January as demand held up in China and labour disputes and declining ore grades crimped supply.
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