Asian equities firmed after Wall Street’s rally, with the Nikkei rising as much as 1.6% as concerns over the BOJ’s ETF sales plan eased. MSCI’s regional gauge added 0.2%, though India’s tech sector came under pressure after the U.S. announced steep hikes to H-1B visa fees. S&P 500 futures slipped 0.1% but remained near all-time highs, European contracts were flat, and the yen weakened against the dollar. Treasuries edged lower, pushing the 10-year yield to 4.14%. Oil gained 0.8%, gold advanced, and silver reached its highest level since 2011.
Focus now turns to a heavy data slate this week, including euro-area activity readings and the Fed’s preferred inflation gauge. Powell speaks Tuesday after tempering expectations for rapid cuts last week, with markets still pricing in an easing cycle but cautious on the timing. Global equities remain at record levels, supported by optimism around U.S. earnings, though the rally faces its next test in reporting season.
On the geopolitical front, Trump flagged progress with Xi after a call and confirmed they will meet at the APEC summit, boosting hopes of a trade thaw. In Japan, the ruling party leadership race began following PM Ishiba’s resignation, with markets watching closely for signs of policy continuity.
