Asian stocks struggled for traction Tuesday after pacing a global rally as investors set aside protectionist fears in favor of optimism over the U.S. economy. Ten-year Treasuries edged higher after a fourth consecutive sessions of declines.
Stocks ended little changed in Japan, fell in Australia and fluctuated in Hong Kong and South Korea. Earlier, the S&P 500 Index closed at its strongest since mid-March and the Nasdaq Composite Index rose to a record high. U.S. and European equity futures were little changed. The dollar steadied against major peers.
Investors are renewing their focus on the U.S., after jobs figures Friday underscored the resilience of the world’s largest economy. Coupled with easing fears of a euro-zone crisis, it pushed to the background concerns about trade that flared up again over the weekend. Still, trade tensions are likely to return to the fore again this week. Group of Seven leaders meet in Quebec Friday, with the European Union and Canada threatening retaliatory measures unless President Donald Trump reverses course on new steel and aluminum levies.
Elsewhere, the Australian dollar slipped after the nation’s current account deficit widened more than expected and the central bank said inflation will likely remain low for some time. Oil pared losses to trade around $65 a barrel after an OPEC committee stressed the need to ensure supplies can meet growing demand, adding to speculation the group will phase out its production cuts.
These are some key events to watch this week:
Tesla holds its annual shareholder meeting also Tuesday.
U.S. ISM non-manufacturing index out Tuesday. Growth at U.S. service industries probably improved in May for the first time in four months, indicating the economy is strengthening after a first-quarter slowdown, economists forecast.
Reserve Bank of India rate decision on Wednesday.
U.S. trade balance and Australia GDP also out on Wednesday.
On Thursday, Japanese Prime Minister Shinzo Abe meets with U.S. President Trump at the White House to discuss the planned U.S. summit with North Korea’s Kim Jong Un.
Also on Thursday, euro-zone GDP.
Turkey rate decision is due on Thursday.
G-7 Leaders’ Summit starts in Quebec Friday through to June 9.
These are the main moves in markets:
Topix index was little changed at the end of trading in Tokyo.
Kospi index rose 0.2 percent.
Australia’s S&P/ASX 200 Index fell 0.4 percent.
Hang Seng Index rose 0.4 percent. Shanghai Composite Index advanced 0.5 percent.
Futures on the S&P 500 Index fell 0.1 percent.
FTSE 100 futures gained 0.4 percent as of 7:07 a.m. in London.
The MSCI Asia Pacific Index was little changed.
The Bloomberg Dollar Spot Index rose 0.1 percent.
The Japanese yen fell less than 0.1 percent to 109.88 per dollar.
The euro was down 0.1 percent to $1.1687.
The Aussie dollar declined 0.2 percent to 76.31 U.S. cents.
The yield on 10-year Treasuries fell less than one basis point to 2.93 percent.
Australia’s 10-year yield held at 2.73 percent.
Germany’s 10-year bund yield rose less than one basis point to 0.43 percent.
West Texas Intermediate crude rose 0.4 percent to $65.03 a barrel.
Gold fell 0.1 percent to $1,290.92 an ounce.