Australia

Australian shares are set to open lower on Tuesday with few offshore leads, with markets closed in the US, UK and public holidays in several European countries.

ASX futures were 13 points, or 0.16% lower, as of 9:00am on Tuesday, suggesting a dip at the open.

US stock futures rose in thin holiday trading after major progress on negotiations to raise the government's debt ceiling over the weekend.

Global stock indexes were mixed. US and UK markets are closed Monday for public holidays.

President Biden and House Speaker Kevin McCarthy (R., Calif.) reached a tentative deal on Sunday to raise the country's debt limit, heading off the risk that the US will default on its debt. Treasury Secretary Janet Yellen said last week that the failure to reach a deal could lead to the government being unable to pay its bills by as early as June 5.

In commodity markets, futures for Brent crude, the global oil benchmark, slipped around 0.4% to about US$76.70 a barrel. The group of Russia-led oil producers known as OPEC+ is set to meet in Vienna on June 4 to decide on a production plan for the second half of the year amid growing concerns about a slowing global economy. Gold slipped to  US$1,942.00

The 2 Year Australian Government Bond yield dipped to 3.53% and the 10 Year yield eased to 3.65%.

Trading in futures linked to US government bonds was thin on Monday, a result of the US public holiday. But there was a mild rise in the prices of futures linked to two-, five- and 10-year U.S. government bonds.

One Australian dollar is buying 65.35 US cents.

Asia

Chinese shares ended mixed, with sentiment weighed by an uneven recovery in the country as well as investor disappointment over Beijing's limited stimulus measures. Automakers, consumption stocks and developers led losses. Car sales haven't mounted significant gains in the post-Covid era given lower consumer purchasing power and declines in auto subsidies. Great Wall Motor shed 4.4% and BYD lost 0.8%. Cosmetics maker Yunnan Botanee Biotechnology Group fell 7.7%. Property shares remained sluggish as Beijing has yet to issue more supportive policies to support the sector. China Vanke dropped 1.3%. Among gainers were heavy industry and energy stocks. Huaneng Power International added 2.8% and PetroChina rose 7.2%.

The Shanghai Composite Index ended 0.3% higher at 3221.45. The Shenzhen Composite Index fell 0.5% and the ChiNext Price Index dropped 1.1%.

Hong Kong shares extended losses for the fourth straight session, with market sentiment weighed by China's slow economic recovery, a weak yuan and disappointment over Beijing's limited stimulus measures.

The benchmark Hang Seng Index dropped 1.0% to 18551.11. Tech companies led losses, with the Hang Seng Tech Index declining 1.2%. Tencent fell 2.85%, while Meituan dropped 8.1% on fears intensifying competition would likely weigh on the company's profitability. Auto makers were also lower, with BYD Co. dropping 2.05%. Chip makers and energy sector were among gainers. Semiconductor Manufacturing International Corp. increased 2.8% and PetroChina was up 2.3%.

Japanese stocks end higher, led by gains in tech companies and trading houses, following the tentative US debt-ceiling deal. SoftBank Group advances 8.2% and Recruit Holdings adds 2.8%. Mitsui & Co. gains 4.0% and Sumitomo Corp. climbs 4.0%. The Nikkei Stock Average rises 1.0% to 31233.54, a new 33-year high. Investors will be focusing on US congressional votes on the Biden-McCarthy deal.

Europe

European stocks close lower, with the pan-European Stoxx Europe 600 ending down 0.1% at 460.87.

Stocks reversed early gains as the earlier boost to risk appetite from a deal on raising the US debt ceiling between President Biden and House Speaker Kevin McCarthy proves limited and short-lived. The deal had been anticipated and still has to be approved by Congress, while the prospect of further interest-rate rises in the US sours sentiment.

Trading is also subdued, with markets closed in the UK and US and public holidays in several European countries.

Germany's DAX and France's CAC 40 both end 0.2% lower.

North America

US stock futures rose in thin holiday trading after major progress on negotiations to raise the government's debt ceiling over the weekend.

US stocks rallied on Friday on hopes that the two sides were nearing an agreement, sending the S&P 500 and Nasdaq to their highest closes since August. But there is still work to be done to push the deal over the finish line, including votes in both chambers of Congress. That may explain why the market response Monday was somewhat muted, said Tai Hui, chief market strategist for Asia Pacific at J.P. Morgan Asset Management.

"There's still a chance that hard-line Republicans could vote against it, so we're moving in the right direction but it's not a done deal," said Hui. "The market is still taking a wait-and-see tone."

The fear of a US debt default led to a spike last week in the yields offered by short-term Treasury bills, which are typically considered among the safest securities in the world. The yield on bills that matured June 1 rose to 7.1% last Wednesday from less than 6% the day before, although the yield moved lower at the end of last week.