(Bloomberg) -- Asian stocks saw modest gains on reduced volumes after a lackluster session for U.S. shares. China’s yuan rose offshore, paring a weekly decline.
Japan’s Topix Index is heading for a fifth straight weekly advance, benefiting from a global turn toward stocks viewed as more cheaply valued. Australian shares climbed amid rising expectations of another interest-rate cut. Oil prices resumed gains and 10-year U.S. Treasuries held their advance. China’s stocks were little changed as traders took in the central bank’s modest cut to a reference rate for bank loans.
Japanese bonds fell after the central bank trimmed its debt purchases in a regular operation, though later recouped losses. That came a day after Bank of Japan Governor Haruhiko Kuroda said he’d like to see a steeper yield curve.
The S&P 500 Index closed little changed Thursday, within 1% of a record, as gains in software companies offset losses for carmakers. Futures were little changed.
After a slew of monetary policy decisions this week, investors may now shift their focus to the outlook for negotiations between the U.S. and China as trade deputies from both nations are set to meet. Concerns remain about the state of the global economy, with the OECD lowering its world growth forecast to 2.9% from 3.2% as intensifying trade conflicts take a toll on confidence.
“Stocks can continue to rise because they are supported by solid and pretty sturdy fundamentals, but there will be a lot more volatility along the way,” Kate Warne, investment strategist at Edward Jones, told Bloomberg TV. “There’s a lot more monetary stimulus coming into the system,” she said.
Some key events to keep an eye on for the remainder of this week:
- Friday is quadruple witching day for U.S. markets. When the quarterly expiration of futures and options on indexes and stocks occurs on the same day, increased volatility and trading can follow.
Stocks
- Futures on the S&P 500 were flat as of 1:20 p.m. in Tokyo. The index was little changed on Thursday.
- Japan’s Topix index advanced 0.2%.
- South Korea’s Kospi climbed 0.4%.
- Australia’s S&P/ASX 200 Index gained 0.5%.
- Shanghai Composite gained 0.2%.
- Hang Seng Index was flat.
- The yen was at 107.86 per dollar, up 0.2%.
- The offshore yuan added 0.3% to 7.0821 per dollar.
- The Bloomberg Dollar Spot Index was little changed.
- The euro bought $1.1059.
- The yield on 10-year Treasuries dipped to 1.77%.
- Australia’s 10-year yield slid to 1.03%.
- Japan’s 10-year yields were at minus 0.22%.
- West Texas Intermediate crude rose 0.8% to 58.66 a barrel.
- Gold rose 0.3% to $1,503.85 an ounce.