Stocks in Asia traded mixed Tuesday, with many markets closed for the Lunar New Year. The dollar and Treasury yields stabilized after gains.
Australian shares were poised for their biggest climb in more than two years as financials rallied after the results of a yearlong inquiry into misconduct in the financial services sector published Monday were not as harsh as had been anticipated. The S&P 500 Index closed at a two-month high on lower than average volume and the Nasdaq climbed as technology shares advanced. Japanese stocks were little changed and U.S. futures edged lower in Asian trading. The Australian dollar reversed a slide in the wake of disappointing retail sales data after the central bank refrained from adopting a dovish tilt as it left interest rates unchanged.
Markets in Hong Kong and China are among those shut for the Year of the Pig celebrations, keeping volumes subdued after a busy week that included relatively dovish Federal Reserve comments and U.S.-China trade talks in Washington. Investors will continue to look for direction from a corporate earnings season that’s been mixed so far.
In Australia, an index of financial stocks on the benchmark advanced to the highest since November as it headed for its biggest jump in almost nine years. Shares of AMP Ltd., Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. were among those that surged as investors breathed a sigh of relief after the Royal Commission report stopped short of demanding a structural overhaul of the scandal-plagued industry or tighter lending rules that threatened to dent profits.
Elsewhere, oil halted a decline as traders weighed output cuts from OPEC and its partners against expectations for rising U.S. crude inventories.
Among key events in the coming days:
Asian markets closed Tuesday: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, PakistanEarnings season continues, with reports this week from Twitter, Hasbro, Ryanair, Disney, Philip Morris, SoftBank, BNP Paribas, ING, MetLife, Societe GeneraleTrump delivers a delayed State of the Union address TuesdayOn Wednesday, Federal Reserve Chairman Jerome Powell gives his first public comments following the January FOMC meeting and rate decision.Central banks in India and the U.K. set rates this week
These are the main moves in markets:
Stocks
Japan’s Topix index rose 0.2 percent as of 1 p.m. in Tokyo.Australia’s S&P/ASX 200 Index rose 2.1 percent, on course for its biggest increase since November 2016. S&P 500 futures dipped 0.1 percent. The S&P 500 Index rose 0.7 percent, while the Nasdaq Composite Index added 1.2 percent.
Currencies
The Japanese yen dipped 0.1 percent to 109.97 per dollar.Bloomberg Dollar Spot Index was little changed. It gained 0.3 percent Monday. The euro traded at $1.1433.The British pound was flat at $1.3038.The Australian dollar gained 0.4 percent to 72.51 U.S. cents, wiping out an earlier slide of the same magnitude.
Bonds
The yield on 10-year Treasuries held at 2.72 percent. Australia’s 10-year yield added two basis points to 2.25 percent.
Commodities
West Texas Intermediate rose 0.5 percent to $54.82 a barrel.Gold rose 0.2 percent to $1,314.89 an ounce.