Today’s Asian stock market saw a rise in response to shifting focus from Middle East tensions to company earnings and economic data, offering insights into central bank policy directions.
Hong Kong’s benchmark surged over 2%, leading the region’s recovery from last week’s downturn amid relief over no further escalation between Iran and Israel.
Mainland Chinese shares opened with mixed performance as the country’s lenders maintained steady loan prime rates. However, most Asian chip stocks declined after Nvidia’s significant drop, causing concern.
US equity futures edged up after Nasdaq’s decline on Friday. The dollar weakened while 10-year US Treasury yields rose slightly as safe-haven demand eased.
Investors globally are adjusting their positions after strong US data, prompting speculation about the timing of potential rate cuts by the Federal Reserve.
Upcoming US growth and inflation data will further shape expectations. Additionally, a busy week of Treasury auctions awaits.
The earnings outlook for major US companies, excluding tech giants, appears less robust, highlighting potential disparities within the S&P 500.
The limited Israeli strike on Iran and Iran’s restrained response may temporarily ease tensions, according to RBC Capital Markets.
Oil prices fell following two consecutive weeks of decline, as markets pondered the next moves from Iran and Israel. Gold prices also dipped.
In the week ahead, inflation reports from Australia and Malaysia, a policy decision from Bank Indonesia amid currency pressure, and earnings from Caterpillar will be key events to watch.