In Asia, focus continues to be on the yen, which was slightly higher against the dollar. The currency rose on Monday after Japan’s Finance Minister Satsuki Katayama said the country has a “free hand” to take bold action against currency moves that are not in line with fundamentals. The comments were her strongest warning yet to speculators following the yen’s weakening even after the central bank hiked interest rates on Friday.
Meanwhile, developer China Vanke Co. won last-minute support from creditors to extend a bond grace period in a reprieve that helps it avoid default.
Chinese stocks will also be watched after they were downgraded by strategists at Citigroup Inc.
Separately, the US Federal Communications Commission said it would ban most foreign-made drones and critical components for unmanned aircraft systems going forward, a day ahead of a deadline for adding Chinese drone-maker SZ DJI Technology Co. to the agency’s so-called covered entity list.
More broadly, a gauge of the dollar edged lower again after falling 0.4% on Monday, when gold and silver struck new peaks with geopolitical tensions in focus. West Texas Intermediate, the US oil benchmark, slipped after rising more than 2% in the previous session as the US intensified a blockade on Venezuela, with American forces boarding one tanker and pursuing another within weeks of capturing a vessel.
