Global stocks gain as Mexico tariffs averted
U.S. stock futures and Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, while weak U.S. jobs data raised hopes for U.S. interest rate cuts.
The Mexican peso jumped about 2.0% in early Monday trade to 19.2285 on the dollar on news of the deal, while the Chinese yuan slipped to its lowest levels this year on the background of weak Chinese imports data.
S&P 500 mini futures rose as much as 0.8% and were last up 0.4%. The 10-year U.S. Treasuries yield jumped back 3.5 basis points to 2.119 percent, after hitting a 21-month low of 2.053 percent on Friday on soft U.S. jobs data.
Tokyo's Nikkei gained 1.1% while MSCI's index of Asia-Pacific shares outside Japan rose 0.7%, led by strong gains in Hong Kong and Indonesia.
The improved risk sentiment also helped lift the dollar against the yen 0.15% to 108.38 yen.
The euro was little changed at $1.1329 near a 2-1/2-month high of $1.1348 touched on Friday.
The yuan extended its losses, while expectations the Fed will cut rates kept the dollar on the defensive after a weak jobs report from the U.S. Labor Department.
Oil prices extended gains after Saudi Arabia said on Friday OPEC and non-member Russia were close to agreeing to extend an output production cut beyond June and as Wall Street rallied.
Brent futures rose 0.25% to $63.45 per barrel while U.S. crude futures gained 0.57% to $54.30.