Global stocks enjoy relief rally in Asia, bonds retreat(Update 2)

The initial reaction was one of relief that new tariffs were avoided and Japan's Nikkei climbed 1.6% to a two-month top. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4%. Chinese blue chips climbed 2.1% to their highest since late April. E-Mini futures for the S&P 500 rose 0.8% and FTSE futures 0.5%.

SYDNEY: Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-U.S. trade dispute averted one threat to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks.

The dollar firmed modestly on the safe-haven yen as Treasury yields rose and futures reined in bets for a half-point rate cut from the U.S. Federal Reserve this month.