Tuesday 23rd July: Asian stocks higher on Tuesday amid expectations of earnings results

Global Markets:

• Asian Stock Markets : Nikkei up 0.93%, Shanghai Composite up 0.17%, Hang Seng up 0.13%, ASX up 0.39%
• Commodities: Gold at $1416.05 (-0.76%), Silver at $16.25 (-0.96%), Brent Oil at $63.39 (+0.21%), WTI Oil at $56.29 (+0.12%)
• Rates : US 10-year yield at 2.055, UK 10-year yield at 0.717, Germany 10-year yield at -0.335

News & Data:

• (JPY) BOJ Core CPI y/y 0.60% vs 0.60% expected
• (CAD) Wholesale Sales m/m -1.80% vs 0.80% expected
• A Weaker CAD As Market Awaits ECB Action
• BOJ chief hints at additional monetary easing steps

Markets Update:

Asian markets, led by Japan, gained slightly in muted early trading on Tuesday, after stocks closed higher on Wall Street to kick off a busy earnings week. Investors were also encouraged by trade developments, after hope for renewed trade negotiations with China was reported.

Investor sentiment was also boosted after media reports indicated U.S. President Donald Trump has agreed to a request by the chief executives of seven technology companies for timely licensing decisions from the Commerce Department regarding Chinese tech giant Huawei.

Japanese stocks closed modestly lower on Monday. The Japanese market is rising on Tuesday following the overnight gains on Wall Street amid expectations of upbeat corporate earnings results from major companies this week. Shares in Tokyo outperformed, while equities also rose in Sydney and Seoul.

The benchmark Nikkei 225 Index is adding 0.93 percent to 21,639.2. Gains were more modest in Hong Kong and Shanghai was little changed. Shanghai’s new STAR market declined following a big pop in its debut on Monday while the Shanghai Composite is trading u by 0.17%. The Australian market is advancing following the positive cues from Wall Street. ASX 200 Index is rising 0.39 percent after touching a high of 6,730.70 earlier.

The yield on 10-year Treasuries rose 1 basis point to near 2.055%. In the currency market, the U.S. dollar is trading in the 108 yen range on Tuesday. Crude oil prices moved higher on Monday, amid escalation in tensions in the Middle East and continue to rise on Tuesday in Asia as traders continued to monitor the developments in Iran.

Rising stock markets in Asia were cited as putting pressure on the safe-haven gold as traders await decisions from multiple central banks in the next two weeks. Gold lost 0.76% to $1,416.05 an ounce.

Upcoming Events:

• 10:00 am GMT – (GBP) CBI Industrial Order Expectations
• Tentative – (GBP) 10-y Bond Auction
• 1:00 pm GMT – (USD) HPI m/m
• 2:00 pm GMT – (USD) Existing Home Sales
• 2:00 pm GMT – (USD) Richmond Manufacturing Index
• 2:30 pm GMT – (AUD) CB Leading Index m/m
• 10:45 pm GMT – (NZD) Trade Balance
• 11:00 pm GMT – (AUD) Flash Manufacturing PMI
• 11:00 pm GMT – (AUD) Flash Services PMI
• &more…