(Bloomberg) -- Asia stocks looked set for gains Monday and U.S. equity futures climbed after President Donald Trump suspended his plans for tariffs on Mexico. The Mexican peso jumped the most in almost a year.
Japanese and Australian equity futures rose along with those on the S&P 500 Index after the U.S.-Mexico agreement that was unveiled late Friday. The Japanese yen slid and crude oil climbed. Investor attention on the trade front may now focus on China, with the “main progress” in U.S.-China talks reliant on Presidents Donald Trump and Xi Jinping at the G-20 summit late this month, Treasury Secretary Steven Mnuchin said. Treasury yields will open near recent lows after a weak U.S. jobs report bolstered bets on Federal Reserve easing.
Chinese markets will re-open after a holiday Friday, when People’s Bank of China Governor Yi Gang said in an interview that there’s “tremendous room” to ease monetary policy if the trade war deepens. For their part, G-20 finance chiefs over the weekend warned about escalating risks to growth from trade and geopolitical tensions.
Investors are wagering that the recent spate of soft economic data will spur central banks into action to shore up growth. U.S. stocks closed out their best week since November after the jobs report showed employers added the fewest workers in three months and wage gains cooled. Fed funds futures show a quarter-point cut almost fully priced in for July.
On the geopolitical front, Hong Kong’s Beijing-backed government faced new pressure to withdraw legislation easing extraditions to China after as many as 1 million people turned out to oppose the measure.
Here are some key events coming up:
- On Monday, British lawmakers quiz Huawei executives on security as the U.K. weighs whether to allow the Chinese giant to have a role in next-generation broadband networks.
- Japanese Prime Minister Shinzo Abe visits Iran on Wednesday, where he’ll meet with Iran’s Supreme Leader Ayatollah Ali Khamenei.
- ECB President Mario Draghi speaks at a conference in Frankfurt
- A key measure of U.S. inflation, the consumer price index, is also due Wednesday
- The race to succeed Theresa May heats up with the first Conservative Party leadership ballot Thursday.
- Euro-area finance ministers meet in Luxembourg Thursday. On the agenda: financial penalties for Italy over its debt load, and the euro-area budget.
- China and the U.S. release industrial production, retail sales data Friday
And these are the main moves in markets:
Stocks
- Nikkei 225 futures rose 1%.
- Australia’s SPI 200 futures rose 0.5%.
- Hang Seng futures fell 0.2% earlier.
- S&P 500 futures rose 0.5%. The S&P 500 rose 1.1% Friday.
Currencies
- The yen fell 0.3% to 108.49 per dollar.
- The euro was little changed at $1.1323.
- The offshore yuan was at 6.9402.
- Mexico’s peso jumped 1.7% to 19.29 per dollar.
- The Bloomberg Dollar Spot Index was little changed after dropping 0.3% Friday.
Bonds
- The yield on 10-year Treasuries fell four basis points to 2.08% on Friday.
Commodities
- West Texas Intermediate rose 1.2% to $54.61 a barrel.
- Gold fell 0.5% to $1,334.26 an ounce.