(Bloomberg) -- Asian equities looked set to climb after a volatile U.S. session with investors continuing to assess the prospect for a trade deal and averting another American-government shutdown. The yield on 10-year Treasuries edged higher.

Futures indicated gains for stocks in Japan, Hong Kong and China. Australian stocks started trading higher. Futures on the S&P 500 Index opened flat as news broke that Huawei Technologies Co. Chief Financial Officer Meng Wanzhou was granted bail by a Canadian court. A rally in U.S. stocks was snuffed out and the S&P 500 ended Tuesday flat.

Helping improve sentiment was a signal from key Senate leaders to avoid a shutdown hours after President Donald Trump threatened to do so in a spat over funding for his border wall. Carmakers in the U.S. rose as China signaled it may cut tariffs on auto imports, though investors were cautious about a broader deal. The pound weakened as Brexit planning struggled to get back on track.

“For the time being, we maintain a defensive positioning,” said Jean-Pierre Couture, the chief economist and portfolio manager at Hexavest, a unit of Eaton Vance. “Many investors will be surprised when the slowdown is borne out by economic data and earnings announcements at the start of 2019.”

Global markets remain volatile as investors weigh the outlook for company profits against a backdrop of slowing economic growth amid trade tensions. Investors remain unsure how the continuing flap over Canada’s arrest of the Huawei executive will impact trade discussions, and the Washington Post reported that the Trump administration is preparing a series of actions this week to condemn China for efforts to steal U.S. technology.

The Brexit issue continues to weigh on the pound. A leadership challenge to U.K. Prime Minister Theresa May could be close, but the BBC reported the threshold of votes by Conservative members of parliament has not been reached.

In France, the spread between government bond yields and those in Germany rose to the highest since the 2017 election. France’s Prime Minister Edouard Philippe confirmed that President Emmanuel Macron’s efforts to meet protester demands will have an impact on the country’s deficit, with the situation causing a new headache for the EU in its talks over the Italian budget.

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Here are some key events on the calendar this week:

• U.S. inflation data is due Wednesday.
• The European Central Bank is set to end asset purchases at its final policy meeting of 2018 on Thursday.
• China industrial production, retail sales data for November is due Friday.

And these are the main moves in markets:

Stocks

• Futures on Japan’s Nikkei 225 added 1 percent in Singapore.
• Hong Kong’s Hang Seng Index futures rose 0.7 percent.
• FTSE China A50 futures gained 0.8 percent.
• Australia’s S&P/ASX 200 Index gained 0.4 percent.
• Futures on the S&P 500 were flat. The S&P 500 was little changed at the close of trading in New York.

Currencies

• The yen held at 113.40 per dollar.
• The offshore yuan added 0.1 percent to 6.8967 per dollar.
• The Bloomberg Dollar Spot Index gained 0.1 percent Tuesday.
• The euro held at $1.1320.
• The British pound was at $1.2491 after falling 0.6 percent.

Bonds

• The yield on 10-year Treasuries rose two basis points to 2.88 percent.
• Australia’s 10-year bond yield was stable at 2.46 percent.

Commodities

• The Bloomberg Commodity Index fell 0.1 percent.
• West Texas Intermediate crude rose 0.8 percent to $52.07 a barrel.
• Gold held at $1,243.61 an ounce.

©2018 Bloomberg L.P.