Asia Stocks Rebound While Haven-Asset Demand Fades: Markets Wrap

Japanese and Hong Kong equities reversed early declines as automakers and technology companies rose and the yen erased gains. Gold stayed higher amid lingering worries that North Korea is closer to building a device capable of hitting the U.S. Oil fluctuated after climbing for eight straight sessions. U.S. equity and bond markets are set to reopen after the July 4 holiday.

The U.S. confirmed the rocket launched on July 4 was an intercontinental ballistic missile, with Secretary of State Rex Tillerson calling it a “new escalation of the threat” to the U.S. and its allies that would be brought before the United Nations Security Council. Markets in the past have shown a capacity to quickly move beyond periods of tension on the Korean peninsula following short bouts of risk aversion.

Elsewhere, the Federal Reserve is due to release minutes from its June policy meeting, the latest clues for investors on the path for U.S. interest rates ahead of Friday’s key jobs report. Equity investors this year have put their faith in a global economic recovery, helping spur all-time highs in global stocks, whereas bond buyers appear less sanguine on the outlook, doubting Fed rate-hike plans.

What’s coming up:

Political turmoil on the Korean peninsula comes ahead of the G-20 summit in Hamburg this week. U.S. President Donald Trump is expected to hold his first meeting with Russia’s Vladimir Putin as well as meet his Chinese counterpart Xi Jinping. American employers probably added around 175,000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project the U.S. Labor Department to report on Friday.These are the main moves in markets:

Stocks

The MSCI Asia Pacific Index climbed 0.4 percent as of 8:18 a.m. in London, with tech shares contributing the most to gains. The Stoxx Europe 600 Index slipped 0.3 percent, retreating for a second day after surging 1.1 percent on Monday. Australia’s S&P/ASX 200 Index fell 0.4 percent after soaring 1.8 percent Tuesday, the most since Nov. 10. Japan’s Topix index advanced 0.6 percent, erasing an earlier loss, with Subaru Corp. rallying 3.7 percent and Toyota Motor Corp. jumping 1.6 percent. South Korea’s Kospi Index rose 0.3 percent, with Samsung Electronics Co. increasing 1.2 percent. Hong Kong’s Hang Seng climbed 0.3 percent as Geely Automobile Holdings Ltd. rebounded 2 percent. The Hang Seng China Enterprises Index rose 0.6 percent. The Shanghai Composite Index rose 0.8 percent. Futures on the S&P 500 Index were flat. The gauge rose 0.2 percent Monday in a shortened session before the July 4 holiday.Currencies

The yen was little changed at 113.26 per dollar, after climbing as much as 0.4 earlier in the day. The Korean won was also flat. The Australian dollar was at 76.19 U.S. cents, up 0.2 percent, after tumbling 0.7 percent Tuesday in the wake of the Reserve Bank of Australia’s decision to maintain a neutral policy stance. The Bloomberg Dollar Spot Index was little changed, as the British pound was steady at $1.2921 and the euro added 0.2 percent to $1.1366.Commodities

Gold advanced 0.2 percent to $1,225.59 an ounce, paring an earlier gain of 0.5 percent. WTI crude increased 0.1 percent to $47.13 a barrel. Oil has rallied more than 10 percent after falling into a bear market last month.Bonds

The yield on 10-year Treasuries fell two basis points to 2.33 percent. The rate rose five basis points Monday, after surging 16 basis points last week. The market was closed Tuesday. Australian 10-year yields rose one basis point to 2.63 percent, after dropping five basis points in the previous session. U.K. benchmark yields advanced two basis points to 1.27 percent. French and German yields were flat.