(June 28): Stocks in Asia headed for a mixed start ahead of U.S.-China talks at the G-20 conference this weekend. Treasuries climbed.
Futures in Japan and Australia dipped, and were little changed in Hong Kong. U.S. equities closed higher, while American lenders from Goldman Sachs to Bank of America climbed in after-hours trading after announcing share buybacks. The 10-year Treasury yield slipped back toward 2% and the dollar was little changed.
Saturday’s meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in Japan is the next key event for markets, with reports about a tariff pause contrasting with Trump’s repeated threats of more duties. Global equities are up almost 6% in June and world bonds are on course for the best month of this year amid expectations central banks will loosen policy to support fragile global economic growth.
“The best-case scenario is that these negotiations get back on track,” said Libby Cantrill, head of public policy and managing director at Pacific Investment Management Co. “I don’t think we can discount the chance of escalation here even though the base case, especially in the markets, is that we see some sort of truce rather than a settlement.”
Elsewhere, oil slipped but remains on course for its biggest monthly gain since January.
These are the main moves in markets:
The S&P 500 Index rose 0.4%.
Futures on Japan’s Nikkei 225 slid 0.3%.
Hang Seng futures earlier traded flat.
Futures on Australia’s S&P/ASX 200 Index dipped 0.1%.
The yen was at 107.80 per dollar.
The offshore yuan held at 6.8709 per dollar.
The Bloomberg Dollar Spot Index was steady.
The euro was little changed at $1.1369.
The yield on 10-year Treasuries fell four basis points to 2.01%.
West Texas Intermediate crude fell 0.2% at $59.28 a barrel.
Gold held at $1,409.81 an ounce. - Bloomberg