Asia Stocks Climb as Yen Falls; Aussie Rises

Asian stocks climbed, with many of the region’s equity markets rallying after holidays as investors focused on stronger corporate earnings. The yen maintained losses while copper rose with the Aussie.

The MSCI Asia Pacific Index returned to the highest level since June 2015. South Korea led the way, with the Kospi briefly topping its previous record close. The Nasdaq Composite Index ended at an all-time high in the U.S. The yield on 10-year Treasuries held gains after Steven Mnuchin said it “could absolutely make sense” for the government to sell ultra-long bonds. Oil traded near a one-month low. The Australian dollar extended an advance after the Reserve Bank of Australia left its benchmark interest rate unchanged.

Investors are focusing on earnings that have helped power global stocks to a record, with tech shares outperforming. Equities have also rallied since Emmanuel Macron emerged as the front-runner over Marine Le Pen in the French presidential race. A tentative deal by the U.S. Congress to avert a government shutdown eliminated another concern this week, while worries about North Korea have lessened. U.S. President Donald Trump said that if the circumstances were right, he would meet with leader Kim Jong Un.

Despite recent drops in volatility gauges, markets are still subject to jolts. Stocks were whipsawed during the U.S. session after Trump suggested reintroducing rules that keep commercial and investment banking operations separate, triggering a brief slide in bank shares.

China data continue to add to concerns about the strength of the global economy, with a gauge of April manufacturing falling below estimates. That comes after a weaker-than-expected GDP report from the U.S., and ahead of Friday’s key monthly American jobs report. Australia kept interest rates unchanged as inflation speeds up and signs of looming fiscal stimulus increase.

Here are the main moves in markets:


Stocks

· The MSCI Asia Pacific Index added 0.6 percent as of 1:49 p.m. in Tokyo. The Topix index rose 0.7 percent, climbing for a second day to the highest since March. Japanese markets will be closed for holidays over the next three days.

· South Korea’s Kospi index advanced 0.8 percent, at one point climbing above its all-time closing high reached on May 2, 2011.

· The Hang Seng rose 0.3 percent and Singapore’s Straits Times Index added 0.8 percent. The Shanghai Composite Index declined 0.2 percent, following four straight days of gains.

· Australia’s S&P/ASX 200 Index slipped 0.4 percent, breaking a seven-day rally, as banks declined. Australia & New Zealand Banking Group Ltd. lost 2.4 percent after missing first-half profit estimates.

Currencies

· The yen slid less than 0.1 percent to 111.88 per dollar, following a 0.3 percent slide on Monday.

· The Australian dollar climbed 0.4 percent, advancing for a third day.

· The Bloomberg Dollar Spot Index slipped 0.1 percent.

Bonds

· The yield on 10-year Treasuries was flat after jumping four basis points to 2.32 percent Monday, its first advance after three straight declines.

· The yield on Australian government debt with a similar maturity rose four basis points to 2.61 percent.

Commodities

· West Texas Intermediate crude fell 0.2 percent to $48.73, after dropping 1 percent Monday as Libyan output surged, more rigs were added in the U.S. and Saudi Arabia cut prices to Asian customers.

· Copper on the London Metals Exchange rose 0.8 percent.

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