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BusinessToday
3 days ago
- Business
- BusinessToday
Tech Rally Lifts Asia Stocks; Dollar Slips Ahead Of US Jobs Data
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
Economic Times
3 days ago
- Business
- Economic Times
Asian stocks, US futures rise as trade talks progress
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Asian stocks rose along with equity-index futures as record-high US stocks and progress in trade negotiations boosted risk MSCI Asia-Pacific index advanced 0.3% at the open Monday. The Nikkei 225 index jumped by more than 1% after Japan's top negotiator extended his stay in the US for further trade talks ahead of a July 9 deadline. Contracts for the S&P 500 index and the Nasdaq 100 rose 0.3%. A gauge of the dollar dipped 0.1% as Senate negotiations continued over President Donald Trump's $4.5 trillion tax-cut oil fell 1% as traders wound back risk premiums before the OPEC+ meeting. Treasuries slipped, with the yield on the 10-year rising about 1 basis point to 4.28%.On Friday, US stocks rose to a fresh all-time high for the first time since February, underscoring the conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a boost for equities. A gauge of Asian stocks is set to climb more than 4% for a second month as investors look past tariff angst and recent tensions the Middle East.'The momentum and trends seen in risky markets portray an almost nirvana environment in which to operate,' Chris Weston, head of research at Pepperstone Group, wrote in a note. Rapid reduction of geopolitical risks and expectations about imminent trade deals are 'all adding tailwinds to risk markets.'India's trade team extended its stay in Washington to iron out differences as the two sides look to clinch a deal before the July 9 deadline, people familiar with the matter said. Trump also said he doesn't think he'll need to extend the market's resilience may be seen as complacent with traders 'eating up' the Trump administration's rhetoric, said Kyle Rodda, a senior market analyst at in Melbourne. Markets could trend higher should the aggregate tariff rate fall following the deadline, or face 'some reversal' if deals don't materialize, he US inflation and easing uncertainty in trade tensions have helped improve market sentiment this month. The S&P 500 index has gained 10% this quarter, its sixth advance in seven quarters. A gauge of the dollar has tumbled 6.3% this quarter, on pace for its biggest decline since December 2022.'The recent conflict in the Middle East is a reminder, both that new policy shocks can surface, but also that unless the worst outcomes materialize, they can create a 'wall of worry' for markets to climb,' Goldman Sachs Group Inc. strategists including Kamakshya Trivedi wrote in a negotiations over Trump's tax cut bill are continuing as Republicans seek to convince holdouts to support it for final passage, with a vote set to spill into Monday. The nonpartisan Congressional Budget Office estimates the measure would add nearly $3.3 trillion to US deficits over a will soon shift to Chinese manufacturing and non-manufacturing PMIs later Monday as traders assess the impact Trump's trade war on its economy.'Market participants will closely watch if new export orders in the manufacturing PMIs recover further after the US and China agreed on a trade truce in mid-May,' Commonwealth Bank of Australia strategists including Kristina Clifton wrote in a note to clients.
Time of India
3 days ago
- Business
- Time of India
Asian stocks, US futures rise as trade talks progress
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Asian stocks rose along with equity-index futures as record-high US stocks and progress in trade negotiations boosted risk MSCI Asia-Pacific index advanced 0.3% at the open Monday. The Nikkei 225 index jumped by more than 1% after Japan's top negotiator extended his stay in the US for further trade talks ahead of a July 9 deadline. Contracts for the S&P 500 index and the Nasdaq 100 rose 0.3%. A gauge of the dollar dipped 0.1% as Senate negotiations continued over President Donald Trump's $4.5 trillion tax-cut oil fell 1% as traders wound back risk premiums before the OPEC+ meeting. Treasuries slipped, with the yield on the 10-year rising about 1 basis point to 4.28%.On Friday, US stocks rose to a fresh all-time high for the first time since February, underscoring the conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a boost for equities. A gauge of Asian stocks is set to climb more than 4% for a second month as investors look past tariff angst and recent tensions the Middle East.'The momentum and trends seen in risky markets portray an almost nirvana environment in which to operate,' Chris Weston, head of research at Pepperstone Group, wrote in a note. Rapid reduction of geopolitical risks and expectations about imminent trade deals are 'all adding tailwinds to risk markets.'India's trade team extended its stay in Washington to iron out differences as the two sides look to clinch a deal before the July 9 deadline, people familiar with the matter said. Trump also said he doesn't think he'll need to extend the market's resilience may be seen as complacent with traders 'eating up' the Trump administration's rhetoric, said Kyle Rodda, a senior market analyst at in Melbourne. Markets could trend higher should the aggregate tariff rate fall following the deadline, or face 'some reversal' if deals don't materialize, he US inflation and easing uncertainty in trade tensions have helped improve market sentiment this month. The S&P 500 index has gained 10% this quarter, its sixth advance in seven quarters. A gauge of the dollar has tumbled 6.3% this quarter, on pace for its biggest decline since December 2022.'The recent conflict in the Middle East is a reminder, both that new policy shocks can surface, but also that unless the worst outcomes materialize, they can create a 'wall of worry' for markets to climb,' Goldman Sachs Group Inc. strategists including Kamakshya Trivedi wrote in a negotiations over Trump's tax cut bill are continuing as Republicans seek to convince holdouts to support it for final passage, with a vote set to spill into Monday. The nonpartisan Congressional Budget Office estimates the measure would add nearly $3.3 trillion to US deficits over a will soon shift to Chinese manufacturing and non-manufacturing PMIs later Monday as traders assess the impact Trump's trade war on its economy.'Market participants will closely watch if new export orders in the manufacturing PMIs recover further after the US and China agreed on a trade truce in mid-May,' Commonwealth Bank of Australia strategists including Kristina Clifton wrote in a note to clients.
International Business Times
09-06-2025
- Business
- International Business Times
Asian Markets Rally on Strong U.S. Jobs Data and Renewed China Trade Talks
There is a cautious yet optimistic tone in Asian markets this week. After a stressful week of economic anxiety, investors finally had a reason to breathe easier on Friday as job numbers in the United States beat expectations and a fresh round of trade talks between the United States and China offered a glimmer of hope. For many glued to the screen tickers from Tokyo to Hong Kong, it felt as if the week had begun on a mildly more hopeful note. Asian shares rallied on Monday, and the U.S. dollar weakened slightly. The catalyst was unexpectedly strong U.S. payroll data released late last week, which eased fears of a sharp economic slowdown. Wall Street had already cheered the news on Friday, sending major indices up. The S&P 500 gained 1 percent and the Nasdaq 1.2 percent. That momentum then carried over into Asia. Japan's Nikkei gained 0.9%, supported by strong earnings and signs of a rebound in international demand. The Hang Seng Index in Hong Kong climbed 1.3 percent, momentarily rising above the 24,000-point level — a level it hadn't reached since March. The MSCI Asia-Pacific index (excluding Japan) was up 0.5% in early trade. The upswing also follows last week's broader regional rally. The KOSPI in South Korea and STI in Singapore both surged, as traders took relief from the prospect of reduced tensions in the worldwide trade environment. But there was still uncertainty. New standoffs in Los Angeles over immigration policy led President Trump to send in the National Guard. The resulting turbulence sent a dose of caution through otherwise buoyant markets. While not directly linked to economic policy, this domestic volatility could spread to investor confidence internationally. Currency markets, meanwhile, reacted to the change in tone. The dollar fell 0.3 percent against the yen, and the euro rose to $1.1422. Traders will continue to closely watch upcoming U.S. inflation figures, which would likely guide the Federal Reserve's next move on interest rates. A great deal of attention now is focused on the already looming talks between Beijing and Washington, likely to start this week in London. Senior officials from both countries will hold talks, including U.S. Treasury Secretary Scott Bessent and China's China's Vice Premier He Lifeng. The discussions are expected to center on critical minerals, a market in which China is highly influential. Investors are keeping a close eye, and any progress could help deliver more economic stability in the second half of 2025. Gold prices slipped slightly, to $3,303.19 an ounce, and oil prices were mostly flat. U.S. crude was flat at around $64.56 after two days of gains, with supply factors and demand outlook for the global economy in investors' minds.
BusinessToday
22-04-2025
- Business
- BusinessToday
Asian Markets Struggle Amid US Economic Concerns And Dollar Weakness
Asian stock markets faced a challenging session on Tuesday, struggling to maintain their ground after US markets were rattled by concerns over President Donald Trump's attacks on the Federal Reserve and a continued sell-off in US assets. Wall Street saw a steep decline of around 2.5 per cent on Monday, with the dollar falling to three-year lows. The uncertainty surrounding the independence of the Federal Reserve weighed heavily on Treasuries. Despite the turmoil in the US, the losses in Asia were relatively limited, sparking discussions about the potential reallocation of funds to the region's equities. However, the ongoing concerns about the economic impact of tariffs remained a significant drag on the markets. 'The 'sell America' trade was in full flight,' said Tapas Strickland, head of market economics at NAB. He added that the President's vocal criticisms of Fed Chair Jerome Powell, particularly his call for rate cuts, underscored a loss of US exceptionalism and raised policy risks for investors. Strickland pointed out that the political tension was adding to the uncertainty surrounding the US economy. While the selling pressure eased slightly in Asia, it provided some relief for US stock futures, with S&P 500 futures rising 0.4 per cent and Nasdaq futures up 0.5 per cent. Despite this, the market remained on edge as the earnings season continued, with major companies such as Tesla, Alphabet, Boeing, Northrop Grumman, Lockheed Martin, and 3M set to report their results this week. Tesla had already seen a nearly 6 per cent drop on Monday amid reports of production delays. In Asia, Japan's Nikkei index dipped by 0.3 per cent, while the MSCI Asia-Pacific index excluding Japan fell by 0.2 per cent. However, Chinese blue-chip stocks held steady. European markets fared worse, with futures for the EUROSTOXX 50, FTSE, and DAX all down around 0.7 per cent amid volatile trading. The US bond market also reflected growing concerns. Yields on US 10-year notes stood at 4.40 per cent, having climbed due to fears that President Trump could attempt to replace Powell with someone more inclined to cut rates. This, combined with rising inflation driven by Trump's tariffs, further exacerbated the uncertainty. The White House's trade talks, which are ongoing or about to begin, added to the unease, as analysts at JPMorgan noted that the average trade deal takes 18 months to negotiate and 45 months to implement. The loss of confidence in US assets led to a sharp decline in the dollar, which hit its lowest point since March 2022 against a basket of currencies. The dollar also hit a decade-low against the Swiss franc at 0.8038, while the euro briefly rose above US$1.1500, settling at US$1.1486. In contrast, the dollar's weakness and a surge in demand for safe-haven assets helped gold reach a new record, surpassing US$3,343 an ounce. On the other hand, oil prices saw a slight recovery, with Brent rising 58 cents to US$66.82 a barrel, and US crude adding 51 cents to US$63.59 per barrel, as concerns about a global economic slowdown met the prospect of increased supply from OPEC. The markets now face a crucial week ahead, with earnings reports and trade developments likely to provide more clarity on the economic outlook. Reuters Related
