Asian markets saw gains following a rally in US tech stocks, seen as a key test for the ongoing equities bull run. Japan and South Korea’s equity benchmarks rose, with Hong Kong futures also pointing upwards. US futures showed gains in early Asian trading.
While indicators of business activity weakness have fueled expectations for US rate cuts, they have been beneficial for equities but bearish for the dollar and Treasury yields.
Equities, after reaching record highs, have faced recent setbacks on signals of the Federal Reserve’s intention to maintain higher rates for longer. This downturn has made stocks more appealing as it’s cleared market excess, with investors now focusing on earnings, according to Citigroup Inc. strategists.
The S&P 500 recently saw its strongest consecutive rally in two months. Treasuries remained relatively steady after a solid auction of two-year notes, with 10-year yields largely unchanged.
Oil prices held gains amid shrinking US crude stockpiles and developments in potential sanctions against Iran. Meanwhile, gold prices remained stable.
In Japan, the yen’s stability near the 155 level against the dollar has kept traders cautious of potential currency intervention.
Indian stock markets are anticipated to open positively, reflecting the upbeat global sentiment. The GIFT Nifty suggests a robust start for the Indian benchmark index. Despite a recent negative candle formation, the Nifty’s near-term uptrend remains intact, with focus on quarterly results from multiple Nifty 50 companies.
