Asian stocks report gains, the treasury yield curve continues to flatten

• Asian stocks are better bid, S&P 500 futures report marginal gains.
• The treasury yield curve is flattest in more than 10 years.

Asian stocks are flashing green despite the moderate drop in the Dow Jones Industrial Average (DJIA).

As of writing, Japan's Nikkei index is up 0.70 percent or 157 points. Shares in Japan and Australia climbed while those in South Korea are little changed. The MSCI Asia Pacific Index is up 0.2 percent. Meanwhile, the S&P 500 futures are trading flat to positive.

The bid tone could be associated with fading geopolitical tensions. The US is seeking to dial down tensions with North Korea and Russia. Meanwhile, the Japanese PM is looking forward to reaching a mutually beneficial trade deal with the US.

Also, the uptick in the stocks indicates the investors are not concerned about the flattening yield curve. As of writing, the spread between the US 10-year treasury yield and the 2-year treasury yield is 44 basis points - the lowest since October 2007.