Asian Stocks Steady at Open; Yuan Trims Retreat: Markets Wrap

Asian stocks were steady early Tuesday as traders await gauges of manufacturing activity and key American jobs data later in the week to help assess the economic outlook.

Shares fluctuated in Japan, South Korea and Australia. S&P 500 and Nasdaq 100 futures edged lower following a U.S. holiday. The offshore yuan trimmed a retreat sparked by China forcing banks to keep more foreign currencies in reserve for the first time in over a decade, its most substantial move yet to rein in a surging currency.

Oil climbed as OPEC and its allies forecast that inventories will fall sharply this year if the group sticks to its current plan. Gold had its biggest monthly advance since July and most industrial metals gained. The 10-year U.S. Treasury yield ticked higher and the dollar inched downward.

In Australia, the central bank is expected to keep loose policy settings unchanged. But it may be getting closer to a decision on whether the economy is strong enough to join Canada and New Zealand in signaling a move away from emergency stimulus.

Global stocks are starting the new month near record highs, underpinned by the economic recovery from the pandemic and ample liquidity from sustained stimulus. Still, concerns linger that rising price pressures could prompt central banks to withdraw support earlier than anticipated.

“We believe the market has been premature in scaling back the reflation trade simply because some commodities and U.S. Treasury yields have experienced a correction,” wrote Eric Robertsen, chief strategist at Standard Chartered Bank.

Stock Exchange, Economía Mundial, Auge

Here are key events to watch this week:

Reserve Bank of Australia policy decision TuesdayOPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on Friday

These are some of the main moves in markets:

Stocks

S&P 500 futures slipped 0.1% as of 9:14 a.m. in Tokyo. The gauge was little changed Friday.Nasdaq 100 futures shed 0.1%. The index rose 0.2% Friday.Japan’s Topix index fell 0.1%Australia’s S&P/ASX 200 Index dropped 0.4%South Korea’s Kospi index retreated 0.1%

Currencies

The yen traded at 109.43 per dollar, up 0.1%The offshore yuan was at 6.3704 per dollarThe Bloomberg Dollar Spot Index fell 0.1%The euro was at $1.2226

Bonds

The 10-year U.S. Treasury yield rose about one basis point to 1.61%Australia’s 10-year bond yield dipped one basis point to 1.70%

Commodities

West Texas Intermediate crude rose 1% to $67 a barrelGold was at $1,907.18 an ounce