Asian stocks kicked off the week in a mixed fashion as holiday closures crimped volume and traders weighed the ongoing trade-war tensions. The yen advanced and Treasury futures were steady.
Equities in China and South Korea advanced, while they were little changed in Sydney and Hong Kong. Futures on the S&P 500 Index edged higher after US stocks lost ground on Friday. The yen nudged up, extending moves seen at the end of last week as US President Donald Trump said that planned trade talks with China could be called off. The yuan edged higher as China’s central bank fixing continued to signal its determination to manage orderly currency depreciation.
A volatile start to August for global markets has seen bond traders lift expectations for central-bank easing. The People’s Bank of China late Friday called for a “rational” view on current headwinds, and former central bankers warned that the confrontation with the US is deepening. Trump said Friday that it would be “fine” if US-China negotiations planned for next month were called off, adding that he’s “not ready to make a deal.”
Markets are shut on Monday in Japan, Singapore, India, Malaysia, Philippines and Thailand.
Elsewhere, the won extended losses as data signalled exports are set to drop for a ninth straight month in August as the impact of the US-China trade spat spreads. In Argentina, President Mauricio Macri’s poor showing in primary elections on Sunday will likely trigger a major selloff across the country’s assets on Monday.