Stocks Mixed as Dollar Slips; Oil Near 2014 High: Markets Wrap

Most Asian stocks dipped in a holiday-hit trading session Tuesday, with the dollar stalling near a five-month high and U.S. Treasuries little changed. Crude oil steadied around its highest level since 2014.

While the S&P 500 Index climbed overnight thanks to easing trade tensions, that optimism appeared to have played out by the time Asian trading began Tuesday. Shares in Japan and Australia fell alongside those in China, even as companies selling baby products saw gains after news the country plans to abandon its policy on birth limits. European futures pointed to a mixed open, while the euro drifted and Italian 10-year bond yields ticked lower.

“Markets are going through a bumpy ride,” Bank of Singapore Investment Strategist James Cheo said on Bloomberg Television. “This trade truce is still in the early days. It’s really a ceasefire, it’s not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors.”

Outside of trade, plenty of other topics stand ready to capture investors’ attention. Along with the minutes of the Federal Reserve’s latest policy meeting and those of the European Central Bank, there is a slew of debt sales from the U.S. On the geopolitical front, U.S. President Donald Trump meets South Korea President Moon Jae-in in Washington to coordinate their approach to North Korea, while Brexit negotiations are ongoing.

Elsewhere, pressure on emerging-market currencies eased as the dollar stalled, with the Malaysian ringgit and the Indonesian rupiah heading up. Hong Kong and South Korean markets were shut for Buddha’s Birthday.