AUDUSD buy 1H

(Bloomberg) -- Asian financial markets were roiled for a time Tuesday morning after comments by a senior White House official that had quickly revived concerns about U.S.-China tensions.

Peter Navarro, who has advised President Donald Trump on trade matters, had been quoted saying the Sino-American trade deal was “over” in an exchange on Fox News primarily focused on China’s connection with the coronavirus. That triggered a selloff in Asian stocks, U.S. futures, crude oil and the offshore yuan.

Moves quickly began reversing after Navarro was quoted saying his remarks had been taken out of context. President Donald Trump’s remark that the bilateral trade deal signed in January was fully intact helped send S&P 500 futures back into the green.

The swings in risk assets Tuesday followed what had been a constructive session on Wall Street Monday, when equities climbed as investors continued to bet on companies with strong balance sheets and better prospects in work-from-home economy. The Nasdaq 100 jumped more than 1%, and the Nasdaq Composite capped a seventh straight advance in its longest rally of the year.

Influential investors had added to the positive sentiment prior to Navarro’s comments. Steve Schwarzman, chief executive officer of Blackstone Group Inc., said the economy is likely to benefit from a V-type recovery in the next few months, though getting back to 2019 level will take “quite a while.” Hedge fund manager Bill Ackman said he sees gradual improvement on all fronts with so many resources poured into the health-care crisis.

Here are some key events coming up:

MSCI Inc. on Tuesday announces its market classification review for 2020.The IMF will release new 2020 growth projections on Wednesday.U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.

These are the main moves in markets:

Stocks

S&P 500 futures were little changed as of 11:27 a.m. in Tokyo. The S&P 500 Index climbed 0.7%.Topix index was up 0.7%.Hang Seng Index rose 1%.Shanghai Composite Index was little changed.Kospi Index rose 0.8%.

Currencies

The Japanese yen fell 0.2% to 107.12 per dollar.The offshore yuan was down 0.1% at 7.0674 per dollar.The euro was little changed at $1.1266.

Bonds

The yield on 10-year Treasuries were flat at 0.71%. Australian 10-year yields ticked up to 0.91%.

Commodities

West Texas Intermediate crude fell 0.3% to $40.62 a barrel. Gold slipped 0.1% to $1,751 an ounce

Reprinted from Bloomberg. The copyright all reserved by the original author.