Most Asian stocks follow US gains; dollar dips: markets wrap

Most Asian stocks followed their US peers higher after President Donald Trump’s departure from hospital eased concerns about his health, and amid optimism that lawmakers will move closer to providing more stimulus. The dollar remained under pressure and Treasuries steadied.

Stocks saw modest gains in Japan, South Korea and Hong Kong. S&P 500 contracts ticked higher after US stocks closed at the highest levels of the day. Nasdaq futures fluctuated on reports a House panel may propose sweeping reforms of the technology sector. Treasury yields held Monday’s gains after surging as traders adjusted their election bets following Joe Biden’s latest poll numbers.

Australian shares fluctuated ahead of the budget announcement and the Aussie climbed after the central bank said it would maintain “highly accommodative” policy settings. The Taiwan dollar extended its winning streak, a day after it closed at the strongest level since 2011.

“Investors are likely running with the idea that recent data and President Trump’s firsthand experience with the virus increases the odds of another fiscal package,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors. “It is becoming harder to deny the need for additional fiscal support.”

Trump left Walter Reed hospital Monday evening after being treated since Friday for Covid-19. Officials plan to significantly restrict physical access to him as he continues his recovery.

With less than a month until election day, his illness jolted the presidential campaign, forcing him to scrap rallies and other events as polls show him trailing Biden nationally and in swing states.

The increased possibility that a clear winner could emerge from the November 3 vote has eased fears in recent weeks about a close election and the risk of a long and messy legal battle.

Elsewhere, crude oil fluctuated and gold was steady.

Here are some key events coming up:

• On Tuesday, Fed Chair Jerome Powell and ECB Chief Economist Philip Lane deliver keynote addresses at the NABE conference
• On Wednesday, the minutes of the September 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increase
• The US Vice Presidential debate takes place in Salt Lake City on Wednesday
• Though the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.

These are the main moves in markets:

Stocks

• S&P 500 futures rose 0.2% at 12:36 p.m. in Tokyo. The S&P 500 Index rose 1.8% Monday.
• Nasdaq 100 futures fell 0.1%.
• Japan’s Topix Index rose 0.4%.
• South Korea’s Kospi Index rose 0.7%.
• Australia’s S&P/ASX 200 rose 0.1%.
• Hang Seng Index rose 0.8%.

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%.
• The yen climbed 0.1% to 105.66 per dollar.
• The euro rose 0.1% to $1.1794.
• The British pound rose 0.1% to $1.2994.
• The Aussie rose 0.3% to $0.7202.

Bonds

• The yield on 10-year Treasuries fell one basis point to 0.77%. It rose eight basis points Monday.

Commodities

• West Texas Intermediate crude futures rose 0.4% to $39.36.
• Gold fell 0.1% to about $1,912 an ounce.