Asia Stocks Climb Amid Thin Volumes; Aussie Rises

Asian stock markets were mostly higher in thin trading as investors assessed the prospects for further gains after a rally leading up to a near-certain U.S. interest-rate increase.

The Aussie dollar and stocks in Sydney rose as the Reserve Bank of Australia kept rates at a record low. South Korea, Taiwan and Hong Kong-listed Chinese stocks posted the biggest increases among equity gauges, with trading volumes down across most of Asia. JPMorgan Chase & Co. warned that hawkish Fed rhetoric has increased the likelihood for a short-term pullback after stocks reached records last week. The dollar slipped after Monday’s advance.

Global stocks this month climbed to a record high amid bets the U.S. economy is strong enough to withstand a rate hike this month that Federal Reserve Chair Janet Yellen has all but assured investors will happen. Chinese Premier Li Keqiang warned of larger challenges ahead during his work report to the annual National People’s Congress gathering in Beijing. In Europe, politics has become the main market driver as populist candidates come to the fore amid election campaigns in the Netherlands, France and Germany.

Here are the main moves in markets:

Currencies

· The Aussie rose 0.4 percent to 76.11 U.S. cents as of 4:07 p.m. in Tokyo. The central bank said conditions in the global economy have improved and local consumption growth was stronger, reducing speculation it will cut interest rates this year.

· The yen was little changed at 113.93 per dollar. The Bloomberg Dollar Spot Index lost 0.1 percent after gaining 0.2 percent on Monday.

· The euro steadied after sliding 0.4 percent Monday. Former Prime Minister Alain Juppe said he won’t enter the race for the presidency, reducing the chances of anti-euro candidate Marine Le Pen being eliminated in the first round of voting.

Stocks

· The S&P/ASX 200 index rose 0.3 percent after swinging between gains and losses before the central bank’s decision.

· The Topix ended little changed while Hong Kong’s Hang Seng added 0.3 percent. The Hang Seng China Enterprises Index rose 0.6 percent. South Korea’s Kospi climbed 0.6 percent.

· Futures on the S&P 500 declined less than 0.1 percent, after the benchmark index lost 0.3 percent on Monday. The index is up 6.1 percent in 2017.

· Contracts on the Euro Stoxx 50 rose 0.1 percent. The Stoxx Europe 600 slid 0.5 percent on Monday, declining for a third day.
Bonds

· Yields on 10-year Australian government bonds rose two basis points to 2.82 percent.

· Similar-dated U.S. yields slipped less than one basis point to 2.50 percent after climbing two basis points Monday.

Commodities

· West Texas Intermediate crude fell 0.2 percent to $53.09 a barrel. Iraq said it was ready to cut production in the second half of this year if OPEC decides to extend a policy limiting output in an attempt to balance a global oversupply.

· Gold was steady at $1,225.46 an ounce after dropped 0.8 percent in the previous session.

· Iron ore for delivery to Qingdao, China, dropped 3 percent, falling for a third straight day. Copper was little changed after sliding 1 percent a day earlier to the lowest in almost a month.

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