logo
Tech Rally Lifts Asia Stocks; Dollar Slips Ahead Of US Jobs Data

Tech Rally Lifts Asia Stocks; Dollar Slips Ahead Of US Jobs Data

BusinessToday10 hours ago

Asian equity markets (Photo credit: Asia Fund Managers)
Asian shares climbed on Monday, powered by unrelenting demand for technology stocks as S&P 500 futures soared to another record high, while the US dollar remained under pressure ahead of key labour market data.
The bullish momentum in Wall Street's tech sector driven by megacaps like Nvidia, Alphabet and Amazon, sent Nasdaq futures up 0.3%, and S&P 500 e-minis 0.2% higher. Japan's Nikkei gained 1.0%, South Korea's market added 0.5%, while the MSCI Asia-Pacific index excluding Japan edged up 0.1%.
The dollar weakened as investors braced for a softer US nonfarm payrolls report, expected a day earlier due to Friday's holiday. Economists forecast a 110,000 job increase in June with unemployment ticking up to 4.3%, potentially reinforcing expectations of a July rate cut by the Federal Reserve.
Michael Feroli, JPMorgan's head of US economics, noted continued job market softening. 'The unemployment rate in June should tick up to 4.3%, with a significant risk of reaching 4.4%,' he said.
Markets are currently pricing in 63 basis points of rate cuts this year, with the odds of a July easing standing at 18%—numbers likely to shift on any labour data disappointment.
Meanwhile, attention also turned to the slow progress of a US tax and spending bill, with the Congressional Budget Office warning it could add US$3.3 trillion to national debt, raising concerns about foreign appetite for US Treasuries.
Despite debt jitters, 10-year Treasury yields held steady at 3.27%, cushioned by the growing prospect of Fed rate cuts.
The dollar index dipped to 97.163, as the euro rose to $1.1731, its highest since September 2021 and sterling hovered near $1.3719. Against the yen, the dollar slipped to 144.48 after a 1% weekly loss.
James Reilly of Capital Economics highlighted a historic trend. 'The dollar has fallen more so far this year than in any other since 1973,' he said, suggesting further weakness could become self-reinforcing.
Fed Chair Jerome Powell is expected to speak at the ECB's Sintra forum on Tuesday, where markets will look for more signals on US monetary policy.
In commodities, gold retreated to US$3,266 an ounce, sliding further from April's record US$3,500, while oil prices extended losses. Brent crude fell 55 cents to US$67.22, and US crude dropped 68 cents to US$64.84, amid concern over OPEC+ output plans.
Reuters Related

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

HKSE Wrap: Regional Optimism Lifts Sentiment For Hong Kong Stocks
HKSE Wrap: Regional Optimism Lifts Sentiment For Hong Kong Stocks

BusinessToday

timean hour ago

  • BusinessToday

HKSE Wrap: Regional Optimism Lifts Sentiment For Hong Kong Stocks

Hong Kong's Hang Seng Index ended the week with modest gains, bolstered by improving global sentiment, a rebound in regional equity markets and a revival in local capital market activity. From June 23 to June 27, the index tracked higher alongside a broader Asia-Pacific rally, closing the week flat to slightly up. Investor confidence was buoyed by easing geopolitical tensions in the Middle East and dovish signals from the US Federal Reserve, which weakened the US dollar and reignited appetite for risk assets across Asia. The Hang Seng has climbed approximately 21.2% year-to-date, marking its strongest first-half (1H25) performance since 2021. Momentum in Hong Kong's capital markets added to the optimism. Anjoy Foods, a Chinese frozen food manufacturer, filed to raise up to HK$2.64 billion in a Hong Kong IPO, reflecting renewed investor interest in equity fundraising. Market attention is also turning to the highly anticipated Shein IPO, expected in 2H25. 'The improving pipeline of listings is a sign of growing confidence in Hong Kong's market structure and economic outlook,' said an equity strategist at a local investment bank. Looking ahead, analysts expect the Hang Seng Index to remain sensitive to global monetary policy developments, Chinese macroeconomic data and foreign capital flows. While volatility may persist, the market's recent resilience signals a cautiously constructive outlook for 2H25. Related

Gold rebounds from over one-month low on weaker dollar
Gold rebounds from over one-month low on weaker dollar

The Star

time3 hours ago

  • The Star

Gold rebounds from over one-month low on weaker dollar

Gold reversed course and edged higher on Monday, supported by a weaker dollar, after hitting a more than one-month low earlier as easing U.S.-China trade tensions dampened safe-haven demand and bolstered risk appetite. Spot gold rose 0.5% to US$3,290 per ounce, as of 0613 GMT, after hitting its lowest since May 29 earlier in the session. U.S. gold futures were up 0.4% at US$3,301. "There is less of a 'doom and gloom' outlook surrounding both tariff talks and events in the Middle East, which is relegating gold to play second fiddle to risk assets," KCM Trade Chief Market Analyst Tim Waterer said. Asian shares firmed, with Wall Street futures advancing, while the U.S. dollar index fell 0.3%. A weaker dollar makes greenback-priced bullion less expensive. The U.S. and China have resolved issues surrounding shipments of rare earth minerals and magnets to the U.S., Treasury Secretary Scott Bessent said on Friday, adding that the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday. Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States. The Iran-Israel ceasefire after a 12-day conflict also appeared to be holding, further reducing safe-haven demand. "The dollar remains pressured, which is limiting the extent of the slide for gold. However, the US$3,250 level shapes as a key support level for gold. Any breach of this level could see losses accelerate towards the US$3,200 level," Waterer said. Stable geopolitical and economic conditions often reduce demand for gold as a safe-haven asset, while the non-yielding asset's appeal further wanes in a high-interest-rate environment. Spot silver rose 0.5% to US$36.16 per ounce, platinum firmed 2% to US$1,366.63, while palladium was up 1.6% at US$1,151.36. - Reuters

Tougher Singapore crypto regulations kick in
Tougher Singapore crypto regulations kick in

Borneo Post

time3 hours ago

  • Borneo Post

Tougher Singapore crypto regulations kick in

Photo for illustration purposes only. — AFP photo SINGAPORE (June 30): Singapore ramped up crypto exchange regulations Monday in a bid to curb money laundering and boost market confidence after a series of high-profile scandals rattled the sector. The city-state's central bank last month said digital token service providers (DTSPs) that served only overseas clients must have a licence to continue operations past June 30 — or close up shop. The Monetary Authority of Singapore in a subsequent statement added that it has 'set the bar high for licensing and will generally not issue a licence' for such operations. Singapore, a major Asian financial hub, has taken a hit to its reputation after several high-profile recent cases dented trust in the emerging crypto sector. These included the collapse of cryptocurrency hedge fund Three Arrows Capital and Terraform Labs, which both filed for bankruptcy in 2022. 'The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, the MAS is unable to effectively supervise such persons,' the central bank said, referring to firms serving solely foreign clients. Analysts welcomed the move to tighten controls on crypto exchanges. 'With the new DTSP regime, MAS is reinforcing that financial integrity is a red line,' Chengyi Ong, head of Asia Pacific policy at crypto data group Chainalysis, told AFP. 'The goal is to insulate Singapore from the reputational risk that a crypto business based in Singapore, operating without sufficient oversight, is knowingly or unknowingly involved in illicit activity.' Law firm Gibson, Dunn & Crutcher said in a comment on its website that the move will 'allow Singapore to be fully compliant' with the requirements of the Financial Action Task Force, the France-based global money laundering and terrorist financing watchdog. Three Arrows Capital filed for bankruptcy in 2022 when its fortunes suffered a sharp decline after a massive sell-off of assets it had bet on as prices nosedived in crypto markets. Its Singaporean co-founder Su Zhu was arrested at Changi Airport while trying to leave the country and jailed for four months. A court in the British Virgin Islands later ordered a US$1.14 billion worldwide asset freeze on the company's founders. Singapore-based Terraform Labs also saw its cryptocurrencies crash dramatically in 2022, forcing it to file for bankruptcy protection in the United States. The collapse of the firm's TerraUSD and Luna wiped out around US$40 billion in investments and caused wider losses in the global crypto market estimated at more than US$400 billion. South Korean Do Kwon, who co-founded Terraform in 2018, was arrested in 2023 in Montenegro and later extradited to the United States on fraud charges related to the crash. He had been on the run after fleeing Singapore and South Korea. — AFP

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store