Stocks Gain as Earnings, Data Boost Confidence: Markets Wrap

The MSCI Asia-Pacific Index rose to the highest since 2007 as equity indexes from Tokyo to Sydney advanced with raw-material producers adding to the recent rally. The bullish start to August for Asian stocks looks like spreading to Europe where futures tipped a higher open. West Texas Intermediate crude traded above $50 a barrel for the first time since May and copper was at a two-year high. The dollar reversed some of Monday’s losses triggered by fresh political turmoil in Washington as the euro fell.

Global equities remain near all-time highs, with data this week from China and Japan reinforcing optimism for growth after figures on Friday showed the U.S. economy accelerating in the second quarter. South Korea’s exports jumped 20 percent in July from a year earlier, topping expectations, as strong global demand continues to underpin the nation’s economy. Washington remains a fixation of traders, with President Donald Trump ousting communications director Anthony Scaramucci after just 10 days on the job.

The Reserve Bank of Australia held the benchmark at 1.5 percent while warning that a rising currency is expected to subdue inflation and weigh on the outlook for growth and employment. The Aussie gyrated after the decision, briefly dipping below 80 U.S. cents before jumping as high as 80.43 cents. It was trading at 80.06 as of 4:38 p.m. in Sydney.

Meanwhile, the slew of corporate earnings continues. Mitsubishi UFJ Financial Group Inc., Apple Inc., Tesla Inc., Berkshire Hathaway Inc. and Toyota Motor Corp. are all set to unveil results this week. BP Plc said profit beat estimates in the second quarter though net debt at the oil company rose.

Here are some key upcoming events:

There’s a stack of data on the U.S. economy due this week. Highlights include jobs data that probably show employers added about 180,000 workers in July. That’s Friday. Also watch out for manufacturing and automaker data on Tuesday. In Europe, euro-zone second-quarter GDP is due out Tuesday as well as German July unemployment. Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial. The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25 percent. Rate decisions are due in India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday).

Stocks

Japan’s Topix index added 0.6 percent. Banks advanced after Sumitomo Mitsui Financial Group Inc. reported a 31 percent increase in net income for the June quarter, while Nitto Denko Corp. raised its net-income forecast after first-quarter earnings beat estimates. Australia’s S&P/ASX 200 Index closed 0.9 percent higher, while South Korea’s Kospi index ended up 0.8 percent. The Hang Seng Index in Hong Kong rose 0.7 percent, while the Shanghai Composite Index climbed 0.3 percent. Contracts on the Euro Stoxx 50 rose 0.2 percent as of 7:35 a.m. in London. Futures on the S&P 500 were up 0.2 percent after the underlying gauge slipped 0.1 percent on Monday, posting a third day of losses. A low-volume U.S. session saw the S&P 500 Index fluctuate, while the Dow Jones Industrial Average eked out a fresh record high. The MSCI Asia Pacific Index climbed 0.7 percent to the highest in almost a decade. It advanced for a seventh-straight month in July.

Currencies

The Bloomberg Dollar Spot Index was little changed. It fell 0.3 percent on Monday to complete its fifth-straight monthly drop. The euro slipped 0.1 percent to $1.1827 after surging 0.8 percent on Monday. The yen was little changed at 110.21 per dollar, having climbed 1.9 percent in July.

Bonds

The yield on 10-year Treasuries was steady at 2.30 percent. The yield on German 10-year bunds rose to 0.55 percent. The Australian 10-year government note saw yields climb to 2.71 percent.

Commodities

West Texas Intermediate crude added 0.1 percent to $50.25 a barrel, following six days of gains. Copper was little changed at $6,365 a metric ton. The metal capped its biggest monthly advance since January as demand held up in China and labor disputes and declining ore grades crimped supply.