Asian stocks advance; dollar, treasuries steady

Asian stocks advanced Tuesday, on track for their biggest gain in two weeks, after a technology-fueled rally in the US amid positive economic data and the potential for further stimulus. The dollar held gains.

Japan, Australia and South Korea outperformed. S&P 500 futures were little changed. Earlier, the Nasdaq 100 reached a record as traders sought out companies poised to do best in a stay-at-home economy.

The dollar held gains after rebounding following its worst July in a decade, and Treasuries maintained losses after data showed US manufacturing expanded in July at the fastest pace since March 2019.

Global equities are closing in on levels last seen in February. US stocks got a boost after the White House was said to be exploring whether President Donald Trump can act on his own to extend enhanced unemployment benefits. A slowdown in the rate of coronavirus infections in a number of states also helped sentiment.

“The gentle hints that the global recovery remains on track continued,” Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, said in a note. “Hopes rose that the US might avoid a deeper recession which was all financial markets needed to send equity markets higher, and for the US dollar to continue recovering some of its recent losses.”

Meanwhile, tension between the US and China continues to simmer. Trump said TikTok will have to close its US business by September 15 — unless there’s a deal to sell the social media network’s American operations. Microsoft advanced as it tried to salvage a deal for the US operations.

Elsewhere, oil dipped after rising the most in nearly two weeks. Gold was steady.

Here are some key events coming up:

• Australia interest rate decision due Tuesday.
• Reserve Bank of India and Bank of England rate decisions due Thursday.
• Dallas Fed President Robert Kaplan discusses the US economy at Thursday event.
• July US employment and jobs reports expected Friday.

These are some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 12:32 p.m. in Tokyo. The S&P 500 Index advanced 0.7%.
• Topix index rose 1.5%.
• Australia’s S&P/ASX 200 Index rose 1.7%.
• Korea’s Kospi index gained 1.1%.
• Hang Seng Index rose 0.7%.
• Shanghai Composite Index was flat.
• Euro Stoxx 50 contracts fell 0.1%.

Currencies

• The yen was at 106.12 per dollar, down 0.2%.
• The offshore yuan was at 6.9836 per dollar.
• The Bloomberg Dollar Spot Index was little changed.
• The euro was at $1.1765.

Bonds

• The yield on 10-year Treasuries was at 0.56%.
• Australia’s 10-year bond yield rose more than three basis points to 0.85%.

Commodities

• West Texas Intermediate crude fell 0.8% to $40.69 a barrel.
• Gold traded at $1 975.89 an ounce.