Asian stocks, US futures climb; Treasuries Steady

Andreea Papuc, Bloomberg

Stocks advanced in Asia Tuesday with US futures as investor focus returned to the US-China trade arena, while Treasury yields steadied after Monday’s gains.

Equities climbed across the region with stocks in China outperforming.

Chinese local governments will have more room to spend on infrastructure, news investors welcomed after President Donald Trump threatened to raise tariffs again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month-end.

There were more modest gains in Japans, while Australian shares also gained. European futures ticked up. The yuan bounced off its lows of the year, while the yen retreated. Oil climbed back near $54 a barrel in New York.

Sentiment remains fragile as investors look to the G-20 summit in Japan as the next way-station in the trade dispute between the world’s two largest economies that has convulsed risk assets.

“The market will be a little volatile going into the G-20 just as you hear whispers around how trade negotiations are likely to unfold,” Caleb Silsby, Whittier Trust chief portfolio manager, told Bloomberg TV. It’s likely the market has priced in a “fairly decent resolution” on trade so any disruption would lead to increased volatility again, Silsby said.

Elsewhere, Mexico’s peso stabilised after posting its best day in almost a year - up more than 2% -- after the accord with the US late Friday.