(Jan 7): Asian stocks looked set to rebound as the risk-off mood sparked by geopolitical tensions in the Middle East ebbed. U.S. shares closed higher while Treasuries and the dollar dropped.

Futures gained in Tokyo and Hong Kong. Australian shares opened higher. U.S. equity futures were flat. Earlier, the S&P 500 Index rose for the third time in four sessions, erasing early losses, as heavyweight technology companies led a recovery. Gold retreated from the highest in more than six years and the yen held losses. Ten-year Treasury yields rose to above 1.80%. Crude oil fell to trade below $63 a barrel, after reaching the highest since April.