(Bloomberg) -- Asian stocks traded mixed on Wednesday as investors mulled the progress of stimulus talks in Washington and reports of a plan to review the U.S.-China trade deal. The dollar declined versus peers.Shares pared losses in Japan and Australia. They rose in South Korea and Hong Kong, with more moderate gains in Shanghai. S&P 500 futures were little changed after the index wavered between losses and gains through Tuesday before closing modestly higher. Gold dipped after hitting a record high. Ten-year Treasury yields stayed near their lowest since March.China’s yuan strengthened to its highest level since March 11, amid hopes that tensions with the U.S. will stay in check before the two sides review their phase-one trade pact later this month.Pressure is growing on Republicans and Democrats to resolve differences over a new U.S. virus relief package. Treasury Secretary Steven Mnuchin said the goal is to strike a deal on legislation by the end of the week. Meanwhile, America and China plan to assess their trade agreement mid-August against a backdrop of rising bilateral tension, according to people briefed on the matter.The outcome of U.S.-China talks will be key for markets, said Shana Sissel, chief investment officer at Spotlight Asset Group Inc. “China really hasn’t been able to meet their hurdles to be in compliance with phase one of the trade deal” because of the pathogen, and rhetoric on both sides is set to increase as the U.S. election nears, she said on Bloomberg TV.Australia’s Victoria state reported a record number of cases, and economists at one of the country’s largest banks said tighter restrictions in the territory will hit nationwide employment. U.S. Health and Human Services Secretary Alex Azar will visit Taiwan to discuss the international response to the Covid-19 pandemic. New Zealand was warned to brace for the inevitable return of Covid-19. In the U.S., California reported the fewest new coronavirus cases since June, while Florida and Arizona also saw their infections slow.Elsewhere, oil was steady after climbing to its highest in nearly two weeks as an explosion at Lebanon’s main port rocked the capital Beirut, stoking fears over instability in the region.Here are some key events coming up:Euro-zone PMI reports are scheduled for Wednesday.Reserve Bank of India and Bank of England rate decisions due Thursday.Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.July U.S. employment and jobs reports expected Friday.These are some of the main moves in markets:StocksS&P 500 futures were flat as of 1:25 p.m. in Tokyo. The S&P 500 Index rose 0.4%.Topix index fell 0.8%.Australia’s S&P/ASX 200 Index fell 0.5%.South Korea’s Kospi index rose 1.2%.Hong Kong’s Hang Seng Index rose 0.6%.Shanghai Composite Index fell 0.3%.Euro Stoxx 50 futures rose 0.2%.CurrenciesThe yen was at 105.59 per dollar, up 0.1%.The offshore yuan rose 0.3% to 6.9567 per dollar.The Bloomberg Dollar Spot Index fell 0.2%.The euro was at $1.1816, up 0.1%.BondsThe yield on 10-year Treasuries held at 0.51%.Australia’s 10-year bond yield fell two basis points to 0.81%.CommoditiesWest Texas Intermediate crude oil traded at $41.60 a barrel, down 0.2%.Gold slipped 0.2% to $2,014.82 an ounce, after a 2.1% increase.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Reserve Bank of Australia (RBA) on Tuesday announced its decision to maintain the current policy settings.
Sentiment was helped by a survey showing China’s factory activity expanded at the fastest pace in nearly a decade in July.