Asian Stocks Look Set for Gains; Dollar Steady: Markets Wrap

(Bloomberg) -- Asian stocks looked set for modest gains Monday following strong U.S. economic data Friday and positive comments out of Washington on the trade talks. Trading may be subdued as much of the region heads into Lunar New Year holidays.

Over the weekend, U.S. President Donald Trump told CBS trade talks with Beijing are “doing very well” and sounded confident an agreement with North Korea was on the horizon. Futures in Japan, Hong Kong and Australia ticked higher. On Friday, U.S. stocks eked out a small gain as better-than-expected jobs and manufacturing reports overshadowed a disappointing sales forecast from Amazon. U.S. Treasury yields climbed, while the dollar edged up. Oil rose past $55 a barrel in New York, reaching the highest since November.

After a busy few days for markets marked by dovish Federal Reserve comments and U.S.-China trade talks in Washington, there’s a notable lack of catalysts for traders this week, particularly in Asia, where China is off all week and other markets will be shut for days. Investors may again look for direction from a corporate earnings season that’s been indecisive so far.

Elsewhere, Venezuelans marched in dueling protests Saturday, with the two men who claim to be the nation’s leader each exhorting followers to hold firm. The country’s outlook is being followed by oil traders given its role in global exports.

Among key events in the coming days:

• Markets across Asia, including China, Hong Kong, Singapore, Taiwan, South Korea, Malaysia and Vietnam, will close for part or all of the week to mark the start of the Year of the Pig.
• President Donald Trump delivers a delayed State of the Union address Tuesday
• On Wednesday, Fed Chairman Jerome Powell hosts a town hall meeting with educators, his first public comments following the January FOMC meeting and rate decision.
• On Thursday the Bank of England sets interest rates and updates its economic forecasts. No change in policy is expected.
• Also Thursday, the Reserve Bank of India rate decision
• Earnings season continues, including reports from Alphabet (Google), Twitter, Hasbro, Ryanair, Disney, Philip Morris, SoftBank, BNP Paribas, ING, MetLife, Societe Generale

These are the main moves in markets:

Stocks

• Nikkei 225 futures rose 0.2 percent in Osaka.
• S&P/ASX 200 futures rose 0.3 percent.
• The S&P 500 Index rose 0.1 percent Friday.
• The Stoxx Europe 600 Index gained 0.3 percent.

Currencies

• The Bloomberg Dollar Spot Index rose 0.1 percent Friday.
• The euro was little changed at $1.1454 Monday.
• The Japanese yen was little changed at 109.52 per dollar Monday.
• The British pound was at $1.3076.

Bonds

• The yield on 10-year Treasuries rose about five basis points to 2.68 percent Friday.

Commodities

• West Texas Intermediate crude gained 2.7 percent Friday to $55.26 a barrel.
• Gold was little changed at $1,318 an ounce.

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