ASIA POSITIVE, YIELDS AND DOLLAR MODERATELY UP, OIL SHADED.

ECONOMY

On Tuesday, Asian stocks made modest gains after the Trump administration shelved plans for tariffs against Mexico, lifting Wall Street, however, fresh U.S. trade threats against China are expected to limit any major investor sentiment boost.
North Korean state media called on the United States to “withdraw its hostile policy” towards Pyongyang or agreements made at a landmark summit in Singapore a year ago might become “a blank sheet of paper”.
U.S. President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit.
U.S. stocks extended their recent climb on Monday, with the Dow rising for the sixth trading day following a decision by the United States to forego imposing tariffs on Mexican goods.
Mexico and the United States may explore additional steps next month to restrict illegal immigration from Central America, with the threat of tariffs hanging over Mexico if it does not do enough to satisfy U.S. demands, officials said on Monday.

The benchmark U.S. Treasury 10-year yield stood little changed at 2.141%. The yield had risen about 6 basis points overnight as the U.S.-Mexico deal boosted risk appetite and curbed investor demand for safe-haven government debt.
On Monday Indian 10 year bonds yields sharply up from lower levels after RBI cut 25 bps on 6th of June'19. Yields traded at 7.07% after hit 6.91% on Friday.

The dollar gave up some of the modest gains it made against its peers overnight.
The dollar was down 0.11% at 108.48 yen after gaining 0.2% overnight.
The euro edged up 0.03% to $1.1315 following a loss of 0.2% the previous day.
The onshore yuan breached the 6.93 level on Monday for the first time this year as markets reopened after a long weekend. The mainland rate hasn’t touched 7 since the financial crisis.
The lira has risen 2.9% against the rand in June , With debt-laden state-owned companies and political infighting weighing on the rand, the notoriously volatile lira appears a little more attractive in comparison.

On Tuesday , Oil prices stabilized on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.
Prices fell by around 1% in the previous session and crude futures are down by some 20% from their 2019 peaks in late April, dragged lower by a widespread economic downturn that has started to impact oil consumption.
Bullion and futures of gold fell from 14-month highs on Monday, snapping an eight-day rally, as the president's decision not to go ahead with escalating taxes on Mexican imports took a chunk of the fear factor out of global macro markets.