(Bloomberg) -- Asian stocks rose, building on gains in global shares amid optimism over progress on the U.S.-China trade front and indications of more stimulus from the European Central Bank. Treasuries steadied and Japanese government bonds advanced.

Shares in Hong Kong led the rise, with the Hang Seng Index up as much as 2.6%, and Japanese and South Korean equities also higher. That comes on the back of a strong U.S. session after President Donald Trump tweeted he will meet Chinese President Xi Jinping at the G-20 summit next week. Ten-year Treasury yields nudged higher and were at 2.06% after coming close to touching 2% in the prior session. Japan’s 10-year yield dropped to minus 0.15%, near the lower end of the Bank of Japan’s target range.

Next up is the Federal Reserve, which is widely expected to strike a more dovish tone when it concludes a two-day meeting Wednesday. Meanwhile, German 10-year yields tumbled further below zero as ECB President Mario Draghi said officials are ready with stimulus if needed, adding to expectations for easier global conditions. That helped bring the stockpile of negative-yielding bonds globally to a record $12.5 trillion.

Trump said Tuesday that he had a “very good” phone conversation with Xi. The two leaders will hold an “extended meeting” at the G-20 summit on June 28-29 in Osaka and “our respective teams will begin talks prior to our meeting,” Trump said on Twitter.

“At this stage, we are not getting as optimistic as maybe the stock market is about the headlines overnight,” Laura Fitzsimmons, executive director for rates and FX sales at JPMorgan Chase & Co., told Bloomberg TV in Sydney about the developments on trade. “Stock markets can run for a little bit longer but as we get closer to the event itself the risk of disappointment will again appear.”

Elsewhere, oil held Tuesday’s gains after OPEC and its allies moved closer to a meeting to extend supply cuts. The Turkish lira fell on a report the Trump administration is weighing new sanctions on the country over its purchases of the Russian S-400 missile-defense system.

Here are some key events coming up:

• The Fed, Bank of Japan and Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.
• The Fed’s two-day meeting ends Wednesday with a decision and press conference. Officials are expected to debate a rate cut to shelter the U.S. economy, in part, from the fallout caused by escalating trade disputes.
• Final May CPI data for Britain are due on Wednesday.
• U.K. retail sales are set for release on Thursday.

These are the main moves in markets:

Stocks

• The MSCI Asia Pacific Index rose 1.7% as of 1:21 p.m. in Tokyo.
• Japan’s Nikkei 225 climbed 1.7%.
• Hong Kong’s Hang Seng advanced 2.4%.
• The Shanghai Composite rose 1.5%
• South Korea’s Kospi rose 1.1%.
• Futures on the S&P 500 Index were little changed. The underlying gauge rose 1% Tuesday.
• Euro Stoxx 50 futures were little changed.

Currencies

• The yen rose 0.1% to 108.39 per dollar.
• The offshore yuan fell 0.1% to 6.9078 per dollar.
• The Bloomberg Dollar Spot Index was flat.
• The euro was at $1.1193, little changed.

Bonds

• The yield on 10-year Treasuries remained at 2.06%.
• Australia’s 10-year yield fell three basis points to 1.34%.

Commodities

• West Texas Intermediate added 0.3% to $54.07 a barrel.
• Gold was at $1,344.92 an ounce, down 0.1%.

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