SYDNEY (June 7): Asian stocks looked set to follow their U.S. counterparts higher amid optimism Washington may delay a plan to impose tariffs on Mexico. Treasuries edged higher.

Futures rose in Japan and Australia, with markets in Hong Kong and China shut for holidays. The S&P 500 Index extended its advance after Bloomberg News reported that Mexico is pushing for more time to negotiate, though Vice President Mike Pence said at this point, the tariffs will be imposed on Monday. Treasury yields retreated and the dollar slipped ahead of key U.S. employment data Friday.

As trade tension spurs speculation that rate cuts are coming, Friday’s jobs report will be especially scrutinized for signs of cracks in the economy. The International Monetary Fund said the U.S. expansion risks being knocked off course by a further escalation of the trade conflict or a significant
downturn in financial markets.

Bets the Federal Reserve will slash borrowing costs have risen since Chairman Jerome Powell signaled this week he’s open to easier policy amid trade tension. European Central Bank President Mario Draghi indicated he will react to any
deterioration in the outlook, though disappointed some who had expected a clearer signal he’s willing to further loosen policy.

“It appears too early to call for the next round of liquidity-on fueling all asset classes,” said Alexander Kraemer, head of cross asset strategy at Commerzbank AG. “Markets are apparently not yet fully giving in to the central bank put.”

Elsewhere, oil climbed above $53 a barrel and the London Metal Exchange gauge of base metals advanced.

Here are some notable events coming up:

* Theresa May steps down on Friday as leader of the Conservative Party.

* Friday’s U.S. jobs report is projected to show payrolls rose by 175,000 in May, unemployment held at 3.6%, a 49-year low, and average hourly earnings growth sustained a 3.2% pace.

* Finance ministers and central bank governors from the G-20 nations gather in Fukuoka, Japan this weekend.

These are some of the main moves in markets:

Stocks

* Futures on Japan’s Nikkei 225 rose 0.4% in Singapore.

* Futures on Australia’s S&P/ASX 200 added 0.4%. 

* Futures on the S&P 500 dipped 0.2%. The S&P 500 on Thursday climbed 0.6%.

Currencies

* The yen was at 108.40 per dollar. 

* The offshore yuan held at 6.9272 per dollar. 

* The Bloomberg Dollar Spot Index dipped 0.2%.

* The euro bought $1.1278.

Bonds

* The yield on 10-year Treasuries fell about one basis point to 2.12%.

* Australia’s 10-year bond yield added one basis point to 1.48%.

Commodities

* Gold held at $1,334.98 an ounce. 

* West Texas Intermediate crude climbed 0.7% to $52.98 a barrel.