Asian stocks rallied after a second session of gains in the U.S. signaled investor concerns about a potential trade war in wake of President Donald Trump’s proposed tariffs are waning. Treasuries ticked lower.

Japan’s Topix index closed up 1.3 percent after advancing as much as 2 percent, and benchmarks from Hong Kong to Seoul clawed back losses incurred since Trump’s protectionist broadside on Thursday. Ten-year Treasury yields hovered around 2.89 percent, though that offered scant support for the dollar, which was little changed. German bund yields rose and the euro steadied.

“People are realizing a large trade war does not have consensus support, and decent leads last night in the U.S. are driving global risk assets higher,” Joshua Crabb, head of equities at Old Mutual Global Investors in Hong Kong, said.

Trump’s announcement Thursday that he intends to implement tough tariffs on steel and aluminum imports has been followed by calls by House Speaker Paul Ryan to reconsider. White House economic adviser Gary Cohn is summoning executives from U.S. companies that depend on the metal imports to meet this week with Trump in a last-ditch effort to halt the order, people familiar with the matter say.

Elsewhere, the Australian dollar pared gains even as export data beat forecasts and the central bank gave an upbeat assessment of the economy, leaving interest rates unchanged and giving no indication an increase is coming soon. West Texas oil advanced as a halt at Libya’s biggest crude field sparked speculation that supply will tighten.

Here are some key events coming up this week:

The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20. Australia GDP data is due Wednesday. The ECB isn’t expected to change policy on Thursday, but the Governing Council may discuss a change to pave the way for the end of quantitative easing. BOJ monetary policy decision and briefing on Friday. U.S. monthly payrolls data come Friday.

These are the main moves in markets:

Stocks

The MSCI Asia Pacific Index rose 1.3 percent as of 4:09 p.m. Tokyo time. Topix index gained 1.3 percent. Hong Kong’s Hang Seng Index jumped 2.3 percent. Kospi index rose 1.5 percent. Australia’s S&P/ASX 200 Index climbed 1.1 percent. Futures on the S&P 500 Index rose 0.1 percent.

Currencies

The Bloomberg Dollar Spot Index rose less than 0.05 percent. The Japanese yen fell 0.1 percent to 106.27 per dollar. The euro rose less than 0.05 percent to $1.234.

Bonds

The yield on 10-year Treasuries rose less than one basis point to 2.88 percent. Japan’s 10-year yield rose one basis point to 0.056 percent. Australia’s 10-year yield climbed eight basis points to 2.825 percent.
Commodities

West Texas Intermediate crude rose 0.2 percent to $62.71 a barrel. Gold rose 0.1 percent to $1,322.04 an ounce. LME copper increased 0.6 percent to $6,954.00 per metric ton. — Bloomberg

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