The dollar weakened against all its major peers while Asian stocks and U.S. Treasury and index futures climbed as Lawrence Summers withdrew from the Federal Reserve chairman race. Crude oil fell after the U.S. and Russia agreed on a plan to eliminate Syria?s chemical weapons.

The greenback slumped against all 14 of its 16 main counterparts currently trading, losing 1 percent against the Australian dollar by 9:53 a.m. in Tokyo. Ten-year Treasury futures rose 0.9 percent and Australian bond yields dropped as much as 15 basis points. Standard & Poor?s 500 Index (SPX) futures jumped 1.1 percent and the MSCI Asia Pacific Excluding Japan Index gained 0.6 percent with Japanese markets closed. West Texas Intermediate crude sank a second day. Base metals gained.

Summers, a former Treasury Secretary, would tighten Fed policy more than Janet Yellen, who was his main rival to replace Chairman Ben S. Bernanke, according to a Bloomberg Global Poll last week. The Fed is expected to trim Treasury purchases by $10 billion a month at its meeting this week, another survey of economists showed. The U.S. is seeking support from its allies for a deal to confiscate Syria?s chemical arsenal.

?The market prefers Dr Yellen, she would be the smoothest continuation of existing policy,? Phil Orlando, a New York-based chief equity strategist at Federated Investors Inc., which manages about $380 billion in assets, said by phone. ?We know they will probably initiate the taper at the next Federal Open Market Committee and that they will start with about $10 billion. Therefore the passing of the baton is important.?

Dollar Slumps

The yen gained a fourth trading day versus the U.S. currency, climbing 0.5 percent to 99.90 per dollar, set for the strongest close this month. The euro added 0.5 percent to $1.3366. The Australian dollar jumped to 93.40 U.S. cents, while the New Zealand currency rose 0.9 percent to 82.02 cents, poised to close at the strongest price since May 15.

The dollar also weakened against emerging-market currencies, losing 1.3 percent to Malaysia?s ringgit, the most since May 6, and dropping 0.5 percent versus South Korea?s won. The dollar slumped 0.4 percent against the Thai baht.

U.S. President Barack Obama said in a statement that while he accepted Summers? withdrawal he will continue to seek his ?guidance and counsel in the future.? Treasuries fell before rebounding to close at 2.89 percent Sept. 13 after Nikkei reported Summers would be named Fed chairman.

Australian government bonds due in a decade climbed, pushing yields down nine basis points, or 0.09 percentage point, to 3.996 percent, while similar-maturity New Zealand bond yields fell two basis points to 4.799 percent. Futures on 10-year Treasuries rose the most since Aug. 2.

Short-End Bonds

?Markets were priced for the likelihood of a Summers nomination, primarily for the notion that he might raise interest rates sooner than perhaps other candidates, including Janet Yellen,? Tony Crescenzi, a portfolio manager and strategist at Newport Beach, California-based Pacific Investment Management Co., which runs the world?s biggest bond fund, said in an e-mail. ?This news should result in outperformance of shorter maturities? before the Fed Open Market Committee meeting Sept. 17-18.

Yellen, the current Fed vice chairman, may be viewed by markets as a shoo-in for the top job at the Fed after Summers pulled out, National Australia Bank Ltd.?s economics team wrote in a note today. Donald Kohn, a former Fed vice chairman, is also on Obama?s candidate list, the president has said.

Equity ?Positive?

The S& P/ASX 200 Index (AS51) jumped 0.7 percent in Sydney, after halting a five-day advance to drop 0.4 percent Sept. 13. The Kospi Index rallied 1 percent in Seoul, while Japanese markets were closed for Respect-for-the-Aged Day. The broader MSCI Asia Pacific Index rose 0.6 percent.

?It?s quite positive for equities,? George Boubouras, Melbourne-based chief investment officer at Equity Trustees Ltd., where he helps oversee about $28 billion, said by phone. ?It puts Yellen back on the cards as the favorite. She?s more aligned to retaining accommodative policy and is seen as not being as brash as Summers might have been.?

Wholesale-price inflation in India probably quickened 5.70 percent in August, from 5.79 percent in July, according to the median estimate in a Bloomberg survey before data due today.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York climbed 0.4 percent Sept. 13, capping a 2.2 percent advance in the week.