Oil extended a rally, topping $49 a barrel, while Asian equities were mostly higher and the dollar weakened for a fifth straight day.
Crude rose for a fifth day as Goldman Sachs Group Inc. said willingness by Saudi Arabia and Russia to extend output cuts will likely sway other countries to follow suit. Equities from Japan to Australia threw off morning weakness and pushed higher, resuming a rally that sent the S&P 500 Index above 2,400 for the first time. Shenzhen shares jumped while those in Shanghai erased an early decline after the closing of a global summit in Beijing. The yen strengthened with the Mexican peso and South Korean won.
Global equities are extending a record sparked this week by optimism over China’s sweeping plan to boost global infrastructure that was unveiled in Beijing. The surge in oil added to the bullish sentiment, boosting commodity currencies, even as concern grows over the strength of the global economy. Chinese industrial production and retail data came in weaker than expected Monday, after American retail sales and inflation also cast a shadow on growth.
Investors are also focusing on corporate results, poring over retailer earnings in the U.S. and megabanks in Japan. Political concerns continue to weigh on the markets. Traders are watching to see if Donald Trump will deliver on his economic agenda, while his administration becomes embroiled in controversies over the firing of FBI Director James Comey and reports the president revealed sensitive information to a Russian diplomat.
Here’s what investors will be watching:
U.K. inflation data, Germany’s ZEW confidence gauge and gross domestic product figures for the euro area are all slated for Tuesday.
In the U.S., data on industrial production and housing starts are scheduled.
The IEA comes out with estimates of April OPEC production.
Here are the main movers in financial markets:
Oil added 0.4 percent to $49.06 a barrel as of 3:34 p.m. in Tokyo, after surging 2.1 percent Monday. Crude is up for a fifth day, the longest winning streak in more than a month.
Gold rose 0.3 percent to $1,235 an ounce, up for a fourth session.
The MSCI Asia Pacific Index added 0.3 percent to the highest level in two years.
Japan’s Topix rose 0.3 percent, paring an earlier gain of 0.7 percent. The Nikkei 225 Stock Average climbed to as high as 19,998.49 before pulling back. India’s Sensex rose 0.3 percent to a record.
China shares traded in Hong Kong retreated 0.2 percent after surging 1.6 percent Monday amid optimism over Beijing’s infrastructure spending program. The Shanghai Composite Index increased 0.4 percent, erasing an earlier loss. The Shenzhen Composite surged 1.6 percent, the most in six weeks.
Futures on the S&P 500 Index were little changed after the benchmark gauge advanced 0.5 percent Monday.
The Bloomberg Dollar Spot Index slid 0.2 percent, falling for a fifth day to the lowest since April 26.
The yen rose 0.4 percent to 113.37 per dollar, after dropping 0.4 percent Monday.
The South Korean won increased 0.7 percent to the highest since April 3, while the Mexican peso added 0.3 percent.
The yield on 10-year Treasuries fell one basis point to 2.34 percent, after climbing two basis points Monday.
Australian benchmark yields lost one basis point to 2.58 percent, stretching declines to a fifth straight day.