Asia Stocks Set for Mixed Open; Crude Oil Drops: Markets Wrap

(Bloomberg) -- Asian stocks are poised for a mixed open as early gains on Wall Street faded after a rush of trade optimism. Bond yields rose and oil retreated.

Japanese equity-index futures were little changed, while contracts were lower in Australia and advanced in Hong Kong. The S&P 500 Index still closed at the highest in almost four months despite paring its earlier advance as U.S. President Donald Trump raised the possibility of signing a new trade deal with his Chinese counterpart Xi Jinping after extending a tariff deadline. Trump reined in optimism noting that a deal “might not happen at all.”

Traders will be looking for any signs that the progress on trade expressed by the worlds two biggest economies is warranted enough to build on a global rally in equities that has been tested by protectionism and forecasts of slowing global economic growth. Also in focus will be a hearing from Federal Reserve Chairman Jerome Powell, where investors will get the latest read on monetary policy.

Elsewhere, crude oil fell after Trump said in a tweet that prices were too high, while copper held on to gains over Chinese optimism. The pound extended gains as Theresa May is considering a plan to delay Brexit and stop the U.K. leaving the European Union with no deal next month, according to people familiar with the situation.

Here are some key events coming up:

• Federal Reserve Chairman Jerome Powell delivers semiannual testimony on monetary policy and the state of the economy over two days to House and Senate committees.
• U.K. Prime Minister Theresa May updates the House of Commons on Brexit talks as the March 29 deadline nears for Britain to leave the EU. Lawmakers will vote on Feb. 27.
• President Donald Trump and North Korea leader Kim Jong Un are expected to meet for a second summit beginning on Tuesday.
• Thursday brings fourth quarter U.S. GDP.

These are the main moves in markets:

Stocks

• Futures on the Nikkei 225 Stock Average were little changed in Singapore.
• Australia’s S&P/ASX 200 Index contracts fell 0.2 percent
• Hong Kong’s Hang Seng Index futures climbed 0.6 percent.
• The S&P 500 Index rose 0.1 percent Monday.

Currencies

• The yen fell 0.3 percent to 111.06 per dollar.
• The offshore yuan rose 0.4 percent to 6.6827 per dollar.
• The Bloomberg Dollar Spot Index fell less than 0.1 percent.
• The euro gained 0.2 percent to $1.1359.
• The British pound strengthened 0.3 percent to $1.3097.

Bonds

• The yield on 10-year Treasuries climbed two basis points to 2.67 percent.

Commodities

• West Texas Intermediate fell 3.4 percent to $55.34 a barrel, the first drop in nine sessions.
• Gold dropped 0.2 percent to $1,327.05 an ounce.
• The Bloomberg Commodity Index declined 1 percent, the first retreat in more than week.

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