Asian stocks looked set to follow U.S. shares higher Tuesday on optimism over this week’s signing of the Sino-American trade deal. The yuan held near its highest since July.

Futures pointed higher in Japan, Hong Kong and South Korea, while Australian stocks climbed. Earlier, technology shares sent the S&P 500 and Nasdaq Composite Index to closing all-time highs. Gains extended after the U.S. was reported to plan lifting the currency-manipulator label from China, a move that was confirmed after the market closed. The yuan rose offshore. Treasury yields ticked higher and the yen fell toward 110 per dollar.

The Trump administration lifted its designation of China as a currency manipulator, saying the nation has made “enforceable commitments" not to devalue the yuan and has agreed to publish exchange-rate information. The document listed no major U.S. trading partner among the 20 economies it monitors for potential manipulation.

As investors await the signing of the phase one trade agreement on Wednesday in Washington, focus is beginning to return to corporate results. Some of the biggest U.S. banks kick off earnings season Tuesday, amid forecasts that overall corporate profits will show the smallest growth in three years.

“Our expectation is a solid earnings season -- nothing extraordinary but nothing really terrible," Kristina Hooper, chief global market strategist at Invesco, told Bloomberg TV. “The environment is so accommodative that it really is supportive of risk assets, including equities, even if we have a lackluster earnings season."

Elsewhere, the pound led declines among Group-of-10 currencies after another Bank of England official pointed to a potential vote for a U.K. interest-rate cut this month and data showed the economy unexpectedly shrank. Oil and gold retreated.

Here are some events to watch for this week:

  • Phase one of the U.S.-China trade deal is set to be signed on Wednesday in Washington.
  • The biggest American financial institutions kick off earnings season, including JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co., Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and BlackRock Inc.
  • The U.S. releases inflation data for December on Tuesday.
  • The Fed’s so-called beige book is due on Wednesday.
  • China GDP comes on Friday.

These are some of the moves in major markets:

Stocks

  • S&P/ASX 200 rose 0.4%.
  • Hang Seng futures rose 0.7%.
  • Nikkei 225 futures pointed higher.
  • S&P 500 futures were little changed. The S&P 500 Index increased 0.7% Monday.

Currencies

  • The Bloomberg Dollar Spot Index was little changed at 1,192.76.
  • The euro rose 0.1% to $1.1134.
  • The yen was little changed after falling 0.5% to 109.95 per dollar.
  • The British pound steadied at $1.2991 after an 0.6% decline.
  • The offshore yuan was little changed at 6.8818 per dollar after rising 0.5%.

Bonds

  • The yield on 10-year Treasuries climbed three basis points to 1.85% Monday.

Commodities

  • Gold was flat at $1,548.30.
  • West Texas Intermediate crude was steady at $58.11 a barrel.


This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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