A man looks at a board showing the stock prices of the Tokyo Stock Exchange in Tokyo.
Photographer: Kazuhiro Nogiu / AFP via Getty Images
Photographer: Kazuhiro Nogiu / AFP via Getty Images
Asian stocks trimmed gains on Tuesday as caution returned to the region after gold dipped to its daily high and the dollar cut losses after falling to a 22-month low.
Stocks had started the day with expectations that the Federal Reserve will reinforce its moderate message this week and as the US stimulus talks begin. Japanese stocks changed little, with stocks in Hong Kong and China posting modest gains. S&P 500 futures rose after the benchmark erased last week’s drop on Monday, with a rally in tech stocks that overshadowed a drop in banks. Senate Republicans unveiled a $ 1 trillion stimulus package amid a renewed increase in Covid-19 cases worldwide. Treasury bonds sank.
![Gold futures hit record $ 2,000 / oz.](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iXNFxYd1jX0c/v2/pidjEfPlU1QWZop3vfGKspXEg1KErPKE1PKErP"> -img__image graphic “data-img-type =””/></div>
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<p>Investors are betting that setbacks in the global fight against the coronavirus will put pressure on Fed Chairman Jerome Powell to signal on Wednesday that rates will remain near zero any longer. Health officials around the world are also trying to tackle a renewed increase in cases, with sudden increases from China to Spain and Germany underscoring the difficulty in curbing the pandemic.</p>
<p>“The reality is that the Federal Reserve has proclaimed that they will keep printing presses running, print money and created this free buffet,” said Terri Spath, chief investment officer at Sierra Investment Management. “The fund may be in the year, but we expect volatility in the future.”</p>
<p>Meanwhile, US lawmakers continue efforts toward the country’s next fiscal stimulus. Senate Republicans presented the $ 1 trillion proposal as a first step in negotiating a compromise with Democrats, who have offered their own $ 3.5 trillion plan.</p>
<p>Elsewhere, oil fluctuated and silver futures rose.</p>
<p>Here are some key events to come:</p>
<ul>
<li>Earnings include Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, L’Oreal, Caterpillar, Samsung, Barclays, and Credit Suisse.</li>
<li>The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement on Wednesday.</li>
<li>United States’ second quarter GDP is expected on Thursday.</li>
<li>China’s PMI data arrives on Friday.</li>
</ul>
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<p>China reported most domestic coronavirus infections in more than four months while fighting outbreaks in its western and northeastern regions, raising fears of a serious resurgence.</p>
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<p>These are some of the main movements in the markets:</p>
<h3 id="stocks">Stocks</h3>
<ul>
<li>S&P 500 futures rose 0.1% at 12:47 pm in Tokyo. The S&P 500 rose 0.7% on Monday.</li>
<li>The Topix index fell 0.2%.</li>
<li>Australia’s S & P / ASX 200 Index was up 0.2%.</li>
<li>South Korea’s Kospi index rose 1.1%.</li>
<li>Hong Kong’s Hang Seng Index gained 0.5%.</li>
<li>The Shanghai Composite Index gained 0.7%.</li>
<li>Euro Stoxx 50 futures were up 0.1%.</li>
</ul>
<h3 id="currencies">Coins</h3>
<ul>
<li>The yen changed slightly to 105.36 per dollar after appreciating 0.7%.</li>
<li>The offshore yuan was trading at 7,0025 per dollar.</li>
<li>The Bloomberg Dollar Spot Index reduced losses to 0.2%, after falling 0.7% on Monday.</li>
<li>The euro fell 0.2% to $ 1.1726 after increasing 0.8%.</li>
</ul>
<h3 id="bonds">Captivity</h3>
<ul>
<li>The yield on 10-year Treasury bonds increased one basis point to 0.63%.</li>
<li>The yield on Australia’s 10-year bonds rose four basis points to 0.93%.</li>
</ul>
<h3 id="commodities">Basic products</h3>
<ul>
<li>West Texas Intermediate crude oil fell 0.1% to $ 41.54 per barrel.</li>
<li>Gold changed little to $ 1,944.25. It previously rose 1.6% to extend Monday’s 2.1% jump.</li>
</ul>
<p><em>– With assistance from Gregor Stuart Hunter</em></p>
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