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(Bloomberg) — The dollar maintained its ascendancy as a new week of trading got under way, with the focus returning to the divergence in central bank policy around the world. Asian stock futures were mixed, with Japan closed for a holiday.

The greenback was steady at $1.0834 per euro by 8:51 a.m. in Tokyo, after climbing the most since May versus the common currency last week. The Australian and New Zealand dollars traded near six-year lows. Standard & Poor’s 500 Index futures were little changed after Google Inc. drove a surge in technology shares Friday. Contracts on Australia’s index fell less than 0.1 percent, while futures on Chinese shares advanced in most recent trading. Gold extended losses at a five-year low.
The dollar is coming off its best week in two months after Federal Reserve Chair Janet Yellen reaffirmed the outlook for higher U.S. interest rates, with concerns over Greece and the Chinese stock rout receding. Commodity currencies are near multi-year lows, with New Zealand projected to join Canada in cutting borrowing costs again amid sliding prices for oil to metals and dairy. Indonesian markets are also closed Monday, while Greek banks reopen following a three-week shutdown.
“It is with much relief that for the first time in some weeks we come in on a Monday morning and not have to try and get our heads around weekend Greek developments,” Philip Borkin, senior economist in Auckland at ANZ Bank New Zealand Ltd., wrote in a client note. “The global backdrop needs to be watched, with China top of the list in our view.”

Chinese Futures

Futures on the FTSE China A50 Index, a gauge of the biggest mainland Chinese stocks, added 0.5 percent in Singapore late last week, while contracts on the Shanghai Shenzhen CSI 300 Index gained 7 percent. Futures on the Hang Seng China Enterprises Index, which tracks Hong Kong-listed mainland shares, rose 0.1 percent after a 0.9 percent climb in the index on Friday all but erased its fifth straight weekly drop.

The Shanghai Composite Index advanced 3.5 percent Friday, leaving it up 2.1 percent in a second week of gains amid speculation the government is increasing funds to support the volatile market. China Securities Finance Corp., a state-backed agency that provides margin finance and liquidity, has 2.5 trillion yuan to 3 trillion yuan ($483 billion) on tap to support stocks, people familiar with the matter said.

China has gone to significant lengths to arrest an equity selloff that turned the Shanghai Composite into the worst- performing index globally the past month, from one of the best earlier in the year. The cost of U.S.-traded options protecting against declines in the biggest exchange-traded fund tracking Chinese shares has surged as much as 75 percent the past three weeks, with the ETF down 5.5 percent in July.

Kiwi, Loonie

Futures on the Kospi index in Seoul rose 0.1 percent in most recent trade. Hong Kong updates its jobless rate Monday, Taiwan reports export orders and the Philippines posts budget data. The NZX 50 Index fell 0.1 percent Monday in Wellington.

In the currencies market, the New Zealand dollar was little changed at 65.18 U.S. cents after sinking 3 percent last week, its worst selloff since January. The nation’s central bank is expected to cut interest rates Thursday for the second time this year amid sliding milk prices and below-target inflation. The Canadian dollar was steady at C$1.2984, close to its weakest level since March 2009 after last week’s cut, the second in 2015.

The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, was little changed after climbing 0.2 percent Friday in a third day of gains. The yen was steady at 124.09 per dollar Monday following last week’s 1.1 percent retreat, the first in July.

Athens Exchange

Signs of a resolution to Greece’s crisis sent the euro down 3 percent last week. German Chancellor Angela Merkel held out the prospect of limited debt relief at the weekend, saying she was prepared to discuss the matter once Greece successfully completes the first round of its new bailout.
Capital controls and limits will remain in place as banks resume business in the beleaguered nation Monday. The daily cash withdrawal limit of 60 euros will be replaced by a weekly limit of 420 euros, while transfers abroad from Greek accounts remain banned. The Athens Stock Exchange will also stay closed, a spokeswoman said Sunday in a text message.

The focus switched to earnings season in the U.S. Friday, with the Nasdaq Composite Index climbing to a fresh record as as better-than-estimated profit and a reduction in spending drove Google to up 16 percent to an all-time high. The move added $65 billion to the Internet search company’s market capitalization. Bank of America Corp. and Citigroup Inc. also used cost cuts to deliver blowout results last week, helping the S&P 500 up 2.4 percent, its first weekly gain in July.

Commodity Moves

Gold for immediate delivery slipped 0.1 percent to $1,132.75 an ounce, after earlier touching its lowest price since April 2010.

China said at the end of last week that it boosted bullion assets to about 1,658 metric tons, less than brokers at GoldCore Ltd. and Sharps Pixley Ltd. had expected. Signs the economic rebound in the U.S. is on a strong footing is also taming demand for the precious metal as a haven investment.
West Texas Intermediate crude fell 0.1 percent to $50.86 a barrel Monday after slipping a third straight week, losing 3.5 percent in the five days through July 17 as ample U.S. oil inventories and the nuclear accord with Iran fueled concern over a resurgence of the global glut. Brent was little changed at $57.06 a barrel following last week’s 2.8 percent decline.

To contact the reporter on this story: Emma O’Brien in Wellington at eobrien6@bloomberg.net To contact the editors responsible for this story: Emma O’Brien at eobrien6@bloomberg.net John McCluskey