Portugal Colonial - Stocks mixed with trade and earnings in focus; Tokyo reopens with gains

Japanese stocks edged up and the yen held gains after Prime Minister Shigeru Ishiba said he will stay in power despite the weekend election debacle.

Investors took a more cautious path after a largely positive day on Wall Street, where the S&P ended above 6,300 points for the first time and the Nasdaq chalked up yet another record.

Equities continue to rally on expectations key trading partners will strike agreements with Washington before August 1 to avoid Donald Trump's sky-high tariffs, with the US president saying several deals were close. Just three have been struck so far.

His press secretary Karoline Leavitt said more could be reached before next Friday but also warned the president could unveil fresh unilateral tolls in that time.

While Trump's initial tariff bombshell on April 2 rattled global markets before he delayed introducing the measures twice, they have seen more muted reactions to successive threats as traders expect him to eventually row back again.

That optimism has been helped by data indicating the US economy remained healthy despite the imposition of other levies that are beginning to be felt on Main Street.

And SPI Asset Management's Stephen Innes warned traders could be in for a shock next week.

"The new tariff regime isn't being priced -- full stop," he wrote.

"Markets have seen this movie before: tough talk, last-minute extensions, and deal-making in overtime. But this time, Trump isn't bluffing. He's already posted 'No extensions will be granted'.

"The new rates -- 30 percent on the EU, 35 percent on Canada, 50 percent on Brazil -- are politically loaded and economically radioactive. If they go live, there's no soft landing."

Hong Kong has been the standout in Asia this year, piling on around a quarter thanks to a rally in Chinese tech firms and a fresh flow of cash from mainland investors.

And the Hang Seng Index continued its advance Tuesday, with Shanghai, Sydney and Taipei also up.

There were losses in Singapore, Seoul, Wellington and Manila.

Tokyo rose as investors returned from a long weekend to news that Ishiba would remain in power even after his ruling coalition lost its majority in Japan's lower house elections Sunday, months after it suffered a similar fate in the upper house.

His refusal to leave helped the yen push higher against the dollar and other peers, though observers warned the government's tenure remained fragile and investors remained nervous.

The yen strengthened to 147.08 Tuesday before paring some of the gains. That compares with 148.80 Friday.

But Franklin Templeton Institute's Christy Tan said that "Ishiba now faces heightened political headwinds, including pressure over inflation, taxes, and US trade talks".

Focus also turns this week to earnings from some of the world's biggest names, including Tesla, Google-parent Alphabet, General Motors, Intel and Coca-Cola.

While there will be plenty of attention given to the results, the firms' guidance will be key as investors try to gauge companies' pulses in light of Trump's trade war.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 0.2 percent at 39,892.81 (break)

Hong Kong - Hang Seng Index: UP 0.3 percent at 25,074.15

Shanghai - Composite: UP 0.1 percent at 3,563.59

Dollar/yen: UP at 147.50 yen from 147.42 yen on Monday

Euro/dollar: UP at $1.1690 from $1.1688

Pound/dollar: DOWN at $1.3484 from $1.3485

Euro/pound: UP at 86.69 pence from 86.68 pence

West Texas Intermediate: DOWN 0.7 percent at $66.70 per barrel

Brent North Sea Crude: DOWN 0.9 percent at $68.62 per barrel

New York - Dow: FLAT at 44,323.07 (close)

London - FTSE 100: UP 0.2 percent at 9,012.99 (close)

J.Oliveira--PC