* X-Japan up 0.2% in Asia, 0.4% in Nikkei
* S&P 500 futures 0.6%, Nasdaq futures flat
* US debt yield stops
* Asian Stock Market: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, September 8 (Reuters) – US stock futures and Asian stocks gained a few notches after a small surge in European stocks on Tuesday as investors felt that high-flying US tech stocks could recover from their recent stance.
MSCI’s Asia-Pacific shares largest index outside Japan rose 0.2% while Japan’s Nikkei rose 0.4%. US financial markets closed for a public holiday on Monday while Europe’s STOXX 600 index was up 1.7%.
Wiped its Monday loss to trade 0.6% higher in US S&P 500 futures trading globally. Although tech stocks remained more fragile, Nasdaq futures remained flat after falling more than 6% last week.
While many market players say they cannot pinpoint a single trigger for the sudden decline of the Nasdaq, the valuation has been raised after a 75% rise from the lows in March.
Tesla looks to fall after euphoria’s poster child grew by 400% in large technology stocks in the US, out of the group of companies to be added to the S&P 500.
It fell as much as 6.5% in after-hours trading on Friday and fell 2.7% in Frankfurt on Monday.
“Those tech stocks were getting expensive, so I would see their latest revamp as a healthy improvement,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
Risky assets are being faced, but there are suspicions that US policymakers may not be ready to compile the stimulus on a large scale as some traders had hoped.
Elliburnstein’s portfolio manager Masahiko Lu said, “Friday’s US jobs data headline figures were pretty good, leading to speculation that policymakers would not be keen to spend trillions of dollars to support the economy.”
The markets have gone much further this month than the Federal Reserve announced to take a more easing step, he said, adding that there is a reason behind the surge in US bond yields last week.
The 10-month US Treasuryx yield in August was at a five-month low of 0.164% to 0.716%.
In currencies, Sterling was dropped after the European Union told Britain on Monday that there would be no trade deal if it tried to tamper with the Brexit divorce treaty.
The warning came after British Prime Minister Boris Johnson’s government reported plans to enact new legislation to override parts of the Brexit withdrawal agreement signed in January.
The pound fell 0.80% to $ 1.3167 on Monday, its lowest level in two weeks.
Other currencies rose significantly with yields helping to reduce the recent weakness of the US dollar.
The euro depreciated overnight to $ 1.1818, while the dollar moved slightly to 106.31 yen. Gold was slightly changed at $ 1,930.9 an ounce.
Oil prices plummeted to a five-week low after Saudi Arabia cut its monthly prices to supply Asia in five months and the market recovered due to uncertainty over Chinese demand.
US WTI futures fell 1.4% to $ 39.23 a barrel. (Reporting by Hideyuki Sano; Editing by Christopher Cushing)