Asian stocks headed for a mixed open, with those outside Japan looking to gain. New Zealand’s dollar surged after the government renewed the central bank’s current target for the inflation rate as it starts a broader policy review.
U.S. stocks edged higher Monday, with the S&P 500 Index chalking another record close. Australia’s benchmark opened higher. Japanese equity-index futures fell, while those in South Korea and Hong Kong advanced. The U.S. dollar declined against all G10 peers Monday. A political power play in Saudi Arabia contributed to oil climbing to its highest in more than two years. Commodities and precious metals rallied.
New Zealand’s government said the independence of the Reserve Bank won’t change and that it will retain the existing 1-3 percent inflation goal. The new administration also confirmed it’s considering a dual mandate for the central bank of targeting full employment as well as price stability.
The Reserve Bank of Australia meets on Tuesday and is expected to keep the cash target rate unchanged at 1.5 percent as inflation remains lackluster despite an upbeat economic outlook and low employment.
U.S. President Donald Trump continues his visit to Asia, where he is due in Beijing on Wednesday. He kicked off his first presidential tour to the region in Tokyo where he aired grievances about the U.S.’s trade relations with Japan though left without any concessions from Japanese Prime Minister Shinzo Abe.
The unfolding situation in Saudi Arabia will continue to be watched by investors as the government intensifies its anti-graft drive. Saudi Arabia’s attorney general said the weekend arrests of princes, businessmen and officials were only “phase one” of an anti-corruption push drive that has sent oil soaring and unnerved markets.
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Here are key events to watch out for this week:
- China’s October foreign reserves are out on Tuesday.
- U.S. consumer sentiment probably cooled in early November from a more than 13-year high; the University of Michigan’s report is out on Friday.
- OPEC releases its World Oil Outlook.
- Argentina, Mexico, New Zealand, Malaysia and Thailand set monetary policy this week.
- The European Commission’s chief Brexit negotiator Michel Barnier and U.K. Brexit Secretary David Davis resume talks.
- Earnings season continues with announcements from Toyota Motor Corp., BMW AG, Walt Disney Co., Adidas AG, and Siemens AG. European financial companies set to report include Intesa Sanpaolo SpA, Banca Monte dei Paschi di Siena SpA, Credit Agricole SA, Allianz SE and Zurich Insurance Group AG.
And these are the main moves in markets:
- Futures on the S&P 500 Index were little changed as of 8 a.m. Tokyo time. The underlying gauge closed up 0.1 percent.
- Nikkei 225 Stock Average futures contracts were down 0.1 percent in Singapore, while those on Hong Kong’s Hang Seng Index added 0.1 percent. Contracts on South Korea’s Kospi rose 0.3 percent.
- The S&P/ASX 200 Index added 0.6 percent at the open.
- The Bloomberg Dollar Spot Index dropped 0.3 percent on Monday.
- The kiwi dollar was little changed on the New York close at 69.41 U.S. cents, after jumping as much as 0.7 percent on Monday.
- The yen was little changed at 113.80 per dollar. It climbed 0.3 percent in the previous session.
- The euro traded at $1.1610.
- The yield on 10-year Treasuries declined about 1 basis point Monday to 2.32 percent, continuing its retreat from the recent high of 2.48 percent.
- Australia’s 10-year yield rose one basis point to 2.58 percent.
- West Texas Intermediate crude slipped 0.2 percent to $57.22. It gained 3.1 percent on Monday.
- Gold was steady at $1,280.27 an ounce after a 1 percent advance in the previous session.
- Copper rose 1.3 percent to $3.16 a pound on Monday.
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