Stocks in Asia to Advance After Trade Progress: Markets Wrap

(Bloomberg) -- Asian stocks looked set to start the week with gains after signs of progress in U.S.-China trade negotiations lifted U.S. equities Friday and sent Treasury yields higher, though sentiment may be capped as investors voiced skepticism on the accord.Equity futures pointed higher across Asia -- Japan will be shut for a holiday. On Friday, the S&P 500 Index climbed to within 1.8% of a record after President Donald Trump said the two sides agreed to the outlines of a deal that could be signed as early as next month. The yuan edged down after Friday’s advance.The U.S. won’t increase tariffs on China as scheduled as part of a “phase one” trade accord. Beijing will make agricultural purchases and take steps on intellectual property, financial services and the yuan. A Chinese statement didn’t refer to a deal, saying only that “the two sides have made substantial progress,” and mentioning neither the freeze on duties nor the farm-goods commitment.“Financial markets are cheering the U.S.-China agreement from last Friday, but let’s not get carried away,” said Raoul Leering, head of international trade research at ING Bank NV. “There is a very tough journey ahead for the U.S. and Chinese negotiators to cut a deal that really has substance.”The pound retreated as European Union negotiators warned that Brexit plans from U.K. Prime Minister Boris Johnson are not yet good enough to be the basis for an agreement.Focus now turns to earnings season that begins with big U.S. banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.Here are some key events coming up this week:The International Monetary Fund and World Bank host meetings to discuss economic development and finance.St. Louis Fed President James Bullard speaks at Bloomberg’s monetary and financial policy conference in London. Riksbank Governor Stefan Ingves also speaks there. Atlanta Fed President Raphael Bostic speaks in Atlanta. San Francisco Fed President Mary Daly gives a speech in Los Angeles.Wednesday bring a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the “control group” are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main moves in markets:StocksThe S&P 500 Index added 1.1% on Friday.Futures on Hong Kong’s Hang Seng Index rose 0.7%.Futures on Australia’s S&P/ASX 200 Index gained 0.5%.CurrenciesThe yen was at 108.33 per dollar.The offshore yuan dipped 0.1% to 7.0885 per dollar.The Bloomberg Dollar Spot Index dropped 0.4% on Friday.The euro bought $1.1035.The British pound slid 0.5% to $1.2612.BondsThe yield on 10-year Treasuries gained six basis points to 1.73% on Friday.CommoditiesWest Texas Intermediate crude gained 2.2% to $54.70 a barrel.Gold decreased 0.3% to $1,489.01 an ounce.\--With assistance from Sophie Caronello and Mark Tannenbaum.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, James Ludden, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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