In Asian Equity Markets Japan’s Nikkei 225 rose more than 0.5 percent in morning trade while the Topix index gained 0.31 percent. Shares of Japanese automaker Nissan slipped around 0.5 percent despite broadly positive momentum in the sector. The company’s former Chairman Carlos Ghosn made his first public appearance in seven weeks at a Tokyo court, following his arrest in November last year on allegations of financial misconduct. Over in South Korea, the Kospi was 0.17 percent lower. The Shanghai composite declined by more than 0.3 percent.
In Currency Markets the U.S. dollar fell versus other major currencies for a fourth straight session on Tuesday, as investors grew increasingly convinced the Federal Reserve will not raise interest rates this year amid uncertainties over the U.S. economy. The dollar index fell marginally to 95.64. It fell 0.1 percent against the yen and eased marginally versus the euro and sterling in early Asian trade. Elsewhere, the Australian dollar was lower by 0.07 percent at $0.7141. The Aussie dollar has gained for three straight sessions buoyed by stimulus measures in China, its largest trade partner.
In Commodities Markets oil prices were stable on Tuesday, supported by hopes that talks under way in Beijing involving U.S. and Chinese officials could end trade disputes between the world’s biggest economies, while OPEC-led supply cuts also tightened markets. International Brent crude futures were at $57.43 per barrel, up 10 cents, or 0.1 percent from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were at $48.62 per barrel, up 10 cents, or 0.2 percent. Raw sugar futures jumped 6 percent as the market bounced off from the previous session’s three-month low on short covering.
In US Equity Markets Amazon.com Inc and Netflix fueled a second straight session of gains on Wall Street on Monday, as the resumption of U.S.-China trade talks helped ease concerns that have pummeled the market in recent months. The S&P 500 gained 0.70 percent to 2,549.69. The Nasdaq Composite added 1.26 percent to 6,823.47. The Russell 2000 index of small companies rose 1.78 percent, bringing its gain over the past two sessions to 5.60 percent. Loxo Oncology Inc jumped 66.33 percent after Eli Lilly and Co said it would buy the cancer drug developer for about $8 billion.
In Bond Markets U.S. Treasury prices fell on Monday, extending losses from Friday, as investors evaluated the likelihood of further Federal Reserve rate hikes this year and as the United States and China resumed trade talks. Benchmark 10-year notes fell 6/32 in price to yield 2.680 percent, up from 2.659 percent on Friday. The yields fell as low as 2.543 in overnight trading on Thursday, the lowest since January 2018. Interest rate futures traders are now partially pricing in a rate cut for this year, while the Fed has said that two rate increases are likely.