(Bloomberg) -- Stocks in Asia were set for a mixed start Wednesday as the recent escalation in U.S.-Iran tensions kept a lid on sentiment. U.S. equities earlier dipped and the dollar rose, while oil continued its retreat from multi-month highs.
Futures slipped in Japan and Hong Kong, with contracts flat in Australia, after the S&P 500 Index edged lower. The dollar advanced versus the yen, while the 10-year Treasury yield rose to 1.82% after indicators pointed to a resilient U.S. economy. The Australian dollar tumbled.
Investors remain nervous after the U.S. airstrike on an Iranian military leader last week and are watching closely for any further increase in hostilities. On the trade front, a Chinese delegation plans to sign the first phase of its trade deal with the U.S. in Washington on Jan. 15, people familiar with the matter have said.
“This is exactly what the market does -- a negative reaction on the first day and within five days generally back to where it was, not really making a big move at all and seemingly taking this in stride,” Jeffrey Kleintop, chief global investment strategist at Charles Schwab (NYSE:SCHW), told Bloomberg TV from Boston.
Elsewhere, gold edged up. The offshore yuan rose amid optimism of a trade pact and recent signs of improvement in the Chinese economy.
Here are some events to watch for this week:
- Federal Reserve officials Richard Clarida, John Williams (NYSE:WMB), James Bullard and Charles Evans speak on Thursday.
- The U.S. monthly employment report is due Friday.
Stocks
- Futures on Japan’s Nikkei 225 slid 0.5%.
- Hang Seng Index futures earlier declined 0.2%.
- Futures on Australia’s S&P/ASX 200 Index were flat.
- The S&P 500 Index fell 0.3% on Tuesday.
- The yen was at 108.53 per dollar.
- The offshore yuan advanced 0.4% to 6.9432 per dollar.
- The Bloomberg Dollar Spot Index increased 0.3%.
- The euro declined 0.5% to $1.1146.
- The yield on 10-year Treasuries rose one basis point to 1.82%.
- West Texas Intermediate crude fell 0.8% to $62.79 a barrel.
- Gold rose 0.6% at $1,575.08 an ounce.