In Asian Equity Markets Japan’s Nikkei share average hit a 26-year high on Tuesday, helped by gains on global markets during a Japanese holiday, while index heavyweight Fast Retailing jumped on strong December sales. The Nikkei ended 0.6 percent higher at 23,849.99, the highest closing level since November 1991. Japanese markets were closed on Monday for a national holiday. Fast Retailing Co rose 1.2 percent after the clothing company said on Friday that same-store sales at its Uniqlo clothing outlets in Japan rose 18.1 percent in December on the year.  Chip-making equipment manufacturers and electronic components makers outperformed, with Tokyo Electron rising 1.7 percent and TDK Corp adding 0.9 percent. The broader Topix ended 0.5 percent higher at 1,889.29, its highest closing level since June 1991.

In Currency Markets the yen jumped on Tuesday after the Bank of Japan trimmed its buying of long-dated Japanese government bonds in market operations, helping to stoke speculation about a future exit from its massive stimulus policy. The yen rose about 0.4 percent to 112.62 yen to the dollar, bouncing back further from its two-week low of 113.40 per dollar touched on Monday. The euro traded at $1.1971, little changed in Asia after having slipped 0.5 percent on Monday, its largest daily decline since late October. Speculators’ net long position in euro/dollar futures in Chicago reached a record high last week, data from the Commodity Futures Trading Commission showed on Friday, pointing to potential for profit-taking. Dollar index stood at 92.239, after having fallen to 91.751 last week not far from its 2-year low of 91.01 touched last September.

In Commodities Markets U.S. oil prices hit their highest level since 2015 again on Tuesday as speculators bet on further price rises amid OPEC-led production cuts and a dip in American drilling activity, though some warned the rally could run out of steam. U.S. West Texas Intermediate (WTI) crude futures were at $62.24 a barrel up 0.8 percent, above their Monday settlement. They earlier marked a May-2015 high of $62.56 a barrel. Beyond that 2015-high, which was a short intra-day spike, Tuesday’s peak was the strongest level for WTI since December, 2014, at the start of the oil market decline. Brent crude futures were at $68.22 a barrel up 0.6 percent, above their last close. Brent touched $68.27 last week, its highest since May, 2015.

In US Equity Markets the S&P 500 extended its winning streak for 2018 on Monday although its advance slowed as the healthcare and financial sectors weighed and investors awaited the start of the quarterly earnings season. The S&P 500 gained 0.2 percent, to 2,747.71, and the Nasdaq Composite added 0.3 percent, to 7,157.39. Wells Fargo and Citigroup fell more than 1 percent while Goldman Sachs declined 1.5 percent. Most big U.S. lenders have estimated one-off charges to their fourth-quarter earnings on account of U.S. tax cuts. The S&P 500’s healthcare sector ended 0.4 percent lower. Last week it rose 3.2 percent. The Nasdaq biotech index fell 1.4 percent, on track for its biggest one-day percentage decline since mid-December, led by a 3.7 percent decline in Biogen Inc and a 3.3 percent fall in Regeneron Pharmaceuticals Inc.

In Bond Markets U.S. bond yields were little changed on Monday after a boost from stronger German government debt and a Federal Reserve official’s remarks that the U.S. central bank may only raise rates two times this year. The U.S. 10-year note yielded 2.478 percent. The three-year note yield, which is sensitive on Fed policy, stayed near the decade high of 2.07 percent reached earlier in the day.  Japanese government bond prices dipped on Tuesday, with yields on 20 to 40-year bonds hitting one-month highs, after the Bank of Japan reduced its buying in those maturities over 10 years. The benchmark 10-year JGB yield rose 1.0 basis point to 0.065 percent, its highest level in more than two weeks while the 20-year yield went up 1.0 basis point to 0.585 percent, a one-month high. The 30-year yield rose 1.5 basis point to one-month high of 0.830 percent.

Today’s inflection points

• 11:00 GMT+1 EUR Unemployment
• 12:00 USD GMT+1 NFIB small business optimism
• 16:00 USD GMT+1 Fed’s Kashkari (non-voter) speaks