(Bloomberg) -- Stocks in Asia are set to advance after U.S. equities climbed to a record as optimism for a trade deal combined with encouraging earnings and bets the US Federal Reserve will cut interest rates. Treasuries slumped ahead of key central bank decisions.
Futures on Japanese, Australian and Hong Kong stocks were higher. The S&P 500 took out its July record after President Donald Trump said the US is ahead of schedule to sign part of the trade deal. 
The 10-year Treasury yield hit a six-week high. Stock prices and bond yields have been heading higher on increased risk appetite fueled by progress on trade talks between the U.S. and China and expectations for further monetary stimulus from the US Federal Reserve after its Wednesday meeting.
The rise in bond yields “is not a handbrake on stocks at the moment because it is a recalibration of expectations not
something that reflects a repricing of central bank tendencies toward tightening,” Greg McKenna, a strategist at McKenna Macro, wrote in a note Tuesday. 
“So higher bonds reflect a positive backdrop for stocks not an impending issue for them.”
Meantime, the British pound gained after the European Union agreed to a Brexit deadline extension, easing the risk of leaving the bloc without a deal on Oct. 31. 
Bitcoin jumped as much as 16% from Friday, before paring its gain by about one-half. In metals, palladium soared to a record on expectations that stricter air-quality laws in Europe and China will boost demand for the metal used in vehicle pollution-control devices.
Some key events coming up this week in the region and Asia include 
- the release of earnings figures by Facebook, Pfizer, Airbus, Apple, Exxon Mobil, BP, PetroChina, Credit Suisse, Nomura and Macquarie Group.
-The US Federal Reserve is expected to lower the main interest rate when policy makers decide on Wednesday. Futures have priced in about 23 basis points of reduction. Meantime, the US economic growth is forecast to have slowed to 1.6% in the
third quarter. GDP data are due Wednesday.
-The Bank of Japan sets policy on Thursday and Governor Haruhiko Kuroda will hold a news conference.
-Friday brings the monthly U.S. non-farm payrolls report.