Asian stocks edge higher as treasuries steady

Pedestrians are reflected on an electronics stock indicator at the window of a securities company in Tokyo, on June 3, 2019.
Pedestrians are reflected on an electronics stock indicator at the window of a securities company in Tokyo, on June 3, 2019.PHOTO: AFP

TOKYO (BLOOMBERG) - Asian stocks headed higher Tuesday (June 11) as investor focus turned to the US-China trade arena, while Treasury yields were stable after Monday's gains.

Japan's equity benchmark rose, while gains in Hong Kong and China were more modest as markets opened.

Australia outperformed as Vocus Group surged after AGL Energy Ltd. made a bid for the data network operator.

US futures climbed. Earlier, the S&P 500 Index rose for a fifth straight session, though closed below its highs of the day.

US President Donald Trump threatened to raise tariffs on China again if President Xi Jinping doesn't meet with him at the Group of 20 summit at month-end. The yuan bounced off its lows of the year. Crude oil traded above US$53 a barrel in New York.

Sentiment remains fragile as investors look to the G-20 summit in Japan as the next way-station in the trade dispute between the world's two largest economies that has convulsed risk assets.

"The market will be a little bit volatile going into the G-20 just as you hear whispers around how trade negotiations are likely to unfold," Caleb Silsby, Whittier Trust chief portfolio manager, told Bloomberg TV.

It's likely the market has priced in a "fairly decent resolution" on trade so any disruption would lead to increased volatility again, Silsby said.

Elsewhere, Mexico's peso stabilised after posting its best day in almost a year - up more than 2 per cent - after the accord with the US late Friday.

Here are some key events coming up: ECB President Mario Draghi speaks at a conference in Frankfurt on Wednesday.

And these are the main moves in markets:

STOCKS

Japan's Topix index rose 0.4 per cent as of 10.27am in Tokyo.

Australia's S&P/ASX 200 Index rose 1.2 per cent.

South Korea's Kospi index was little changed.

Hong Kong's Hang Seng Index added 0.1 per cent.

Shanghai Composite Index rose 0.3 per cent.

S&P 500 futures rose 0.2 per cent. The underlying gauge added 0.5 per cent in New York.

The MSCI Asia Pacific Index climbed 0.4 per cent.

CURRENCIES

The yen dipped 0.1 per cent to 108.60 per dollar after sinking 0.2 per cent.

The offshore yuan rose 0.2 per cent to 6.9278 per dollar.

The euro was at US$1.1316.

The Bloomberg Dollar Spot Index rose 0.1 per cent.

Bonds The yield on 10-year Treasuries held at 2.15 per cent. It climbed almost 7 basis points Monday.

Australia's 10-year bond yield rose 1 basis point to 1.48 per cent.

Commodities West Texas Intermediate crude rose 0.5 per cent to US$53.51 a barrel after sliding 1.4 per cent Monday.

Gold was little changed at US$1,329.40 an ounce after tumbling 1% Monday.