Asia Stocks Mixed, Dollar Up Before Fed; Oil Holds Losses

Asian stocks were mixed as shares in India jumped to a record on election results while Japanese stocks slipped. The dollar strengthened before central bank meetings this week, and oil held declines after a six-day losing streak.

India’s NSE Nifty 50 Index surged and the rupee climbed to an 11-month high after Prime Minister Narendra Modi’s victory in state elections boosted expectations for a continuation of his reform agenda. Japan’s Topix index fell for the first time in four days. The yield on 10-year Treasuries remained near the highest level of the year. The pound gave up Monday’s gains as the U.K. parliament paved the way for Prime Minister Theresa May to begin two years of talks with the European Union over Britain’s exit.

Global stocks are within a whisker of a record high as analysts ratchet up expectations for the Federal Reserve to raise interest rates at a faster pace than was expected at the start of this year. Data showed China’s economy started the year on a firm footing, with industrial production climbing 6.3 percent in January and February combined, while retail sales advanced 9.5 percent. A major winter storm is expected to hit the U.S. East Coast early Tuesday.

Here are the main market moves:

Stocks

· The MSCI Asia Pacific Index was down 0.1 percent as of 3:59 p.m. in Tokyo. The Topix index fell 0.2 percent after closing Monday at the highest since December 2015.

· India’s Nifty 50 surged as much as 2.1 percent as the market reopened after a public holiday. Modi’s Bharatiya Janata Party won 312 seats in the 403-member assembly of Uttar Pradesh, according to the Election Commission of India, up from 47 in 2012.

· Chinese shares traded in Hong Kong climbed 0.4 percent after surging 1.9 percent on Monday for the biggest gain since November. Taiwan’s Taiex advanced 0.5 percent. The Jakarta Composite Index climbed 0.6 percent to the highest since November.

· Futures on the S&P 500 Index were down 0.1 percent after the benchmark gauge ended Monday virtually unchanged.

Currencies

· The Bloomberg Dollar Spot Index rose 0.1 percent. The yen fell 0.1 percent to 114.96 per dollar.

· The euro slipped 0.1 percent to $1.0645, while the pound dropped 0.4 percent to $1.2166. The U.K. currency rose 0.4 percent on Monday as parliament gave Prime Minister Theresa May permission to trigger Brexit. Meanwhile, Scottish First Minister Nicola Sturgeon said she’ll start the legal process of preparing for a second independence referendum.

Bonds

· The yield on 10-year U.S. government bonds slid one basis point to 2.62 percent. That leaves it above the 2.60 percent level that Bill Gross says would herald the start of a bond bear market if it holds for a week.

· The yield on 10-year Australian government bonds fell one basis points to 2.92 percent.

Commodities

· Oil dropped 0.1 percent to $48.36, near the lowest level in more than three months, before U.S. government data forecast to show record crude inventories expanded further.

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