In Asian Equity Markets Japanese stocks edged lower in see-saw trade on Tuesday, as investors awaited two key U.S. economic reports, although the declines were capped by hopes of a domestic economic recovery on delayed-but-steady rollouts of COVID-19 vaccines. The Nikkei index slid 0.31 percent to 28,770.26, while the broader Topix inched down 0.16 percent to 1,919.86. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.4 percent, as Taiwan and South Korea indexes notched gains. Australia and Chinese markets retreated.
In Currency Markets the dollar was down on Tuesday morning in Asia after China tightened its banks’ forex requirements to curb the appreciation of the yuan. Investors also await key U.S. economic data to gauge the country’s economic outlook. The dollar index was down 0.2 percent at 89.820, falling back below 90 from as high as 90.447 on Friday. Euro traded largely flat at $1.2224, not far from a near five-month high of $1.2266 touched last week. Against the yen, the dollar fell 0.1 percent to 109.50, after climbing as high as 110.20 on Friday.
In US Equity, Markets were closed in observance of Memorial Day.
In Commodities Markets oil prices were firm after gaining more than 5 percent last week to reach two-year closing highs as expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted. Brent added 1.4 percent to $69.69 a barrel, while U.S. crude rose 39 cents to $67.28. Spot gold was up 0.3 percent at $1,907.90 per. Palladium rose 0.2 percent to $2,832.35 per ounce, while platinum climbed 0.7 percent to $1,185.85. Silver gained 0.6 percent to $28.05 and was heading for its largest monthly gain since December.
In European Equity Markets stocks fell from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery helped the STOXX 600 index mark its fourth straight month of gains. The pan-European index was down 0.5 percent, with shares in Frankfurt and Paris falling 0.6 percent, each. Italian insurer Cattolica rose 15.1 percent after bigger rival Assicurazioni Generali said it would launch a 1.17 billion euros ($1.4 billion) buyout offer for the company. UK markets were closed for a holiday.
In Bond Markets Euro zone bond yields climbed on Monday, but kept well below recent highs, as a rise in German inflation further above the ECB’s target in May failed to weaken support to bond markets from the recent dovish turn of the bloc’s central bankers. Germany’s 10-year yield, the benchmark for the bloc, was up nearly 2 basis points to -0.17 percent, around levels it had risen to earlier in the session. Italy’s 10-year yield, meanwhile, was up less than a basis point to 0.92 percent, keeping the closely watched gap between Italian and German 10-year yields at 108 bps, the lowest in over two weeks.