The start-of-week equities rebound in Europe and the U.S. reached Asia on Tuesday, reversing fresh declines Monday as some risk appetite returned.

In foreign exchange markets, the safe-haven yen pulled back during U.S. trading on Monday while oil bounced 2% and Treasury yields rose again.

But investors remained cautious.

“While bargain hunters are nervous about missing out should ’everything turn out to be OK,’ the current rally is likely to be capped until investors get more evidence” about whether countries will issue a raft of tariff actions, said Ric Spooner, chief market analyst at CMC Markets.

“Markets may breathe a little easier if Friday’s U.S. wage-growth data does not exceed expectations” and ease inflation concerns, he added. With unemployment stands at 17-year lows, some investors are concerned that a boost in inflation would prompt more interest rate increases from the Federal Reserve.

Japanese stocks jumped out of the gate after four days of declines, with the Nikkei Stock Average

NIK, +2.13%

  climbing an early 1.6%. The index saw a 6% drop over its recent losing streak amid worries about U.S. protectionism and fresh yen strength.

The dollar

JPYUSD, -0.075274%

  was recently around ¥106.25, versus ¥105.56 at Monday’s Tokyo stock-market finish, when the Nikkei logged its lowest close in nearly five months.

Oil’s gains helped push Australia’s S&P/ASX 200

XJO, +1.30%

  up 1.1% as it looks to break its four-session slide when it lost 2.7%.

South Korea’s Kospi

SEU, +1.28%

 , also seeking its first daily gain since last Tuesday, rebounded 1% as Samsung Electronics

005930, +3.05%

  nearly reversed Monday’s 1.8% slide in the opening minutes. New Zealand’s NZX-50

NZ50GR, +0.44%

  lagged behind with a 0.4% advance as a2 Milk

ATM, -1.87%

  eased 1.3%.

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