Asia stocks set to gain after earnings buoy US equities

Pedestrians are reflected in an electronic stock board outside a securities firm in Tokyo. (Bloomberg pic)

SYDNEY: Asian stocks looked set to climb after strong earnings sentiment helped boost US equities, while lingering trade concerns lifted Treasuries.

The yuan rose amid a report the US is asking China to keep its currency stable as part of the negotiations.

Futures on equity indexes in Japan, Hong Kong and Australia all signalled gains when Wednesday trading begins.

The S&P 500 Index rose after profit at Walmart lifted retailers and home builders got a push from higher housing activity.

Still, worries remain that the trade truce will end March 1 without a deal, leading to fresh tariffs.

The US’s stance on China’s yuan is aimed at neutralising any effort by Beijing to devalue its currency to counter American tariffs, people familiar with the ongoing talks said.

That adds another layer to complex negotiations between the two camps in Washington that are scheduled to run through Friday.

With earnings season nearing its end, the latest minutes from both the Federal Reserve and European Central Bank due this week and US President Donald Trump weighing an extension of the deadline for a trade deal with China, investors have plenty to ponder as the outlook for global growth hangs over everything.

Elsewhere, the pound advanced as UK and European officials work on a new legal text for the contentious Irish border backstop.

Gold traded at the highest since May amid increasing bullishness and West Texas crude oil advanced near its highest in almost three months.