In Asian Equity Markets indices were mostly higher. The Nikkei 225 climbed 0.51%. Shares of technology conglomerate Softbank rose 3.22%. In South Korea, the Kospi gained 0.38%. Australia’s S&P/ASX 200 was up 0.64% as major miners gained. Fortescue Metals was up 1.48%, BHP Group rose 0.95%, and Rio Tinto was up 1.35%. Chinese mainland markets were little changed in the morning. The Shanghai composite and the Shenzhen composite were trading below the flatline, and the Shenzhen component was lower by 0.21%.
In Currency Markets the yen plumbed eight-month lows while China’s yuan climbed to its highest level since July on Tuesday, as the U.S. Treasury Department reversed its decision in August to designate China as a currency manipulator. The dollar rose as much as 0.25% to 110.22 yen, its highest since late May against the safe-haven Japanese currency. It last stood at 110.04 yen. The European common currency, on a recovery after hitting a two-week low of $1.10855 on Friday, last traded at $1.1137.
In Commodities Markets oil prices edged higher on Tuesday as investors focused on the signing of a preliminary trade deal between the United States and China, the world’s top oil consumers, and on expectations of a drawdown in U.S. crude oil inventories. However, price gains were capped by receding Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month’s clashes. Brent crude was up 16 cents, or 0.3%, at $64.36 per barrel after falling 1% on Monday.
In US Equity Markets Apple and other tech favorites propelled Wall Street to record highs on Monday, fueled by optimism about the signing of a preliminary U.S.-China trade deal, as well upcoming fourth-quarter earnings reports. The S&P 500 gained 0.55% to 3,283.24. The Nasdaq Composite added 0.89% to 9,260.62. Aerospace companies Hexcel Corp and Woodward Inc jumped 9.3% and 4.7%, respectively, after the two Boeing suppliers said they would combine in an all-stock merger valued at $6.43 billion.
In Bond Markets U.S. Treasury yields climbed on Monday as investors shifted their focus from Middle East tensions to the expected signing of a trade deal between the United States and China. The benchmark 10-year yield was up 1.5 basis points in afternoon trading at 1.8423% as investors turned to riskier assets as U.S. corporations start to report fourth-quarter earnings this week. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 1.2 basis points to 1.5843% in afternoon trading.