In Asian Equity Markets indices edged up on Tuesday following the firmer lead from Wall Street. The Nikkei 225 reversed early weakness to tack on 0.2 percent and the Topix edged up by 0.48 percent, with 28 of its 33 sub-indexes higher in the morning. The mining and oil sectors traded lower. Across the Korean Strait, the benchmark Kospi added 0.42 percent. Strength in the technology sector stateside carried over to the Asian trading day, buoying the broader index, with heavyweight Samsung Electronics rising 1.73 percent and chip-maker SK Hynix climbing 2.05 percent. Automakers also traded higher in the morning.
In Currency Markets the US dollar hovered near a four-month high on Tuesday, backed by rising Treasury yields and broadly strong U.S. economic data, leaving its major rivals such as the euro struggling and others including the Argentine peso down sharply. The dollar index against basket of six major currencies was steady at 92.766 after reaching 92.974 overnight, its highest since Dec. 28. Elsewhere, the dollar was down 0.1 percent at 108.990 yen after going as high as 109.400 overnight. The Argentine peso’s slide stood out in particular as the country’s central bank had just raised rates on Friday. The Australian dollar was flat at $0.7518 after losing 0.3 percent the previous day.
In Commodities Markets oil prices retreated from 3-1/2 year highs on Tuesday as investors waited on an announcement by President Donald Trump on whether the United States will reimpose sanctions on Iran. U.S. West Texas Intermediate (WTI) crude futures fell 1 percent, to $70 a barrel, after settling above that level for the first time since November 2014 on Monday. Brent crude futures were down 0.8 percent, at $75.54, having jumped 1.7 percent to settle at $76.17 a barrel in the previous session. Trump said on Monday that a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00 p.m. EDT (1800 GMT) on Tuesday, four days earlier than expected.
In US Equity Markets indices climbed on Monday, boosted by Apple’s sixth straight day of gains and by a jump in oil prices to their highest since 2014. The S&P energy index ended 0.18 percent higher, although it surrendered earlier stronger gains. The S&P 500 gained 0.35 percent to 2,672.63. Earlier, the S&P 500 was up as much as 0.75 percent. Seven of the 11 major S&P sectors rose, with the technology index climbing 0.79 percent. Athena Health jumped 16.39 percent after hedge fund Elliott Management proposed an all-cash offer that would value the healthcare IT company at about $6.5 billion. Apple added 0.72 percent, extending gains since it reported results.
In Bond Markets trading was light and Treasury yields were little changed on Monday ahead of this week’s auctions of $73 billion in U.S. government debt and Thursday’s release of the Consumer Price Index inflation metric, even as U.S. oil prices reached their highest since 2014. Yields on benchmark 10-year U.S. Treasury notes were up slightly on Monday, by 0.8 basis point at 2.952 percent, from their last close. Yields on 30-year bonds were up just over 1 basis point at 3.125 percent from their last close. The two-year note was last at 2.497 percent, down modestly from Friday’s close at 2.501 percent.