Some international stock markets rose, and the dollar held near three-month lows, after a U.S. rally that pushed the S&P 500 into positive territory for the year.
Futures tied to the index traded flat, declining less than 0.1% and suggesting that U.S. stocks could be subdued Tuesday. The pan-continental Stoxx Europe 600 edged up slightly, gaining 0.2%.
The Shanghai Composite Index gained 0.5%. Hong Kong’s Hang Seng Index added 1.7% and Australia’s S&P/ASX 200 rose 2.4%.
However, Japan’s Nikkei 225 retreated 0.4% as the yen strengthened to 107.90 a dollar, reversing a recent bout of weakness, while South Korea’s Kospi Composite declined 0.2%.
Some investors were locking in profits after the multiday rally, said Kelvin Tay, regional chief investment officer at UBS Global Wealth Management in Singapore.
“There may be a breather over the next few sessions as investors take stock of their positions,” he said.
Mr. Tay said the continued weakness in the dollar and the agreement by the Organization of the Petroleum Exporting Countries and its allies to extend crude production cuts of 9.6 million barrels a day through July has been positive for commodity-linked currencies.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, strengthened slightly to 90.85, from 90.75 Monday. The previous session’s level was the lowest since March 10. It spiked later in March, amid broader market turmoil, peaking above 97.
On Tuesday, one Australian dollar bought about US$0.70, trading at around its strongest since early January. The Australian dollar had plunged in mid-March to a 18-year low of US$0.551.
The New Zealand dollar traded at about US$0.6527, its strongest since January, after the Pacific nation said it no longer had any active cases of the new coronavirus and lifted all domestic restrictions apart from border closures.
Brent crude, the global gauge of crude-oil prices, slipped 0.5% to $41.02 a barrel, after falling Monday for the first time in seven sessions.
On Monday, the S&P 500 gained 1.2%, moving into positive territory for 2020, while the Nasdaq rose 1.1% to its first record close since February.
Paul Chew, head of research at Phillip Securities in Singapore, said the gradual recovery of major economies and the massive stimulus rolled out by the Federal Reserve has created an “almost perfect” scenario for risky assets like stocks.
“With the yield for 10-year Treasury bonds at less than 1%, there isn’t much intrinsic value for investors,” he said.
Investors’ appetite for risk will continue to rise as new coronavirus cases in large economies trend downward and more countries reopen, he added.
The yield on the 10-year U.S. Treasury note fell Tuesday to 0.841% from 0.883%. Yields move inversely to bond prices.
Hong Kong’s Hang Seng Index added 1.7% Tuesday.
Photo: Vincent Yu/Associated PressWrite to Chong Koh Ping at chong.kohping@wsj.com and Anna Hirtenstein at anna.hirtenstein@wsj.com
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