Asian Stocks Inch Higher Amid Cautious Market Sentiment
Asian shares edged up slightly at the start of the week as investors closely monitored progress in US trade negotiations and awaited signs of additional stimulus from China.
- Japanese and Australian stocks opened higher, reflecting cautious optimism, while US equity-index futures dropped 0.5% in early Monday trading.
- In commodities, gold declined 0.3%, whereas Treasuries and the US dollar remained stable.
Focus Turns to Economic Data and Central Bank Decisions
Investors are bracing for a heavy week of key economic reports, including the Bank of Japan’s rate decision, the US jobs report, and fresh GDP data, which will signal whether recent market steadiness can persist amid tariff tensions.
- On Friday, US shares marked their longest advance in three months, fueled by rising expectations that the Federal Reserve might ease policy again as economic conditions weaken.
Traders Watch for US-China Trade Progress
Market participants are on alert for any breakthroughs in US-China trade talks, after President Donald Trump hinted that a further delay in higher tariffs was unlikely.
- Asian nations are reportedly working to secure interim agreements to avert the return of punitive US tariffs before the current 90-day grace period ends in early July.
US Expands Bilateral Trade Push Without China
US Treasury Secretary Scott Bessent stated that the Trump administration is negotiating bilateral trade deals with 17 key trading partners, excluding China.
- Bessent emphasized that Beijing will likely have no choice but to negotiate, given that China cannot absorb the 145% tariff rate now imposed on its exports to the US.
Tariffs Weigh on US Consumer Sentiment and Inflation Expectations
Concerns over tariffs have significantly affected US consumer sentiment, pushing it to one of its lowest readings in history.
- At the same time, long-term inflation expectations have climbed to their highest levels since 1991, indicating growing economic uncertainty among Americans.
China Promises Stronger Economic Support
China’s Finance Minister Lan Fo’an announced that the country will implement more proactive and effective policies to achieve its growth targets and stabilize the global economy.
- A press conference scheduled for Monday will reveal new measures aimed at stabilizing employment, ensuring stable growth, and promoting high-quality development.
- The briefing will involve several agencies, including the National Development and Reform Commission, Ministry of Human Resources and Social Security, Ministry of Commerce, and the People’s Bank of China.
Markets Await Details on China’s Next Stimulus Moves
Traders remain cautious ahead of China’s announcements, uncertain whether the country will unveil new stimulus measures or simply accelerate existing programs.
- “Until further details are unveiled later today, the market will treat this news cautiously,” said Tony Sycamore, a market analyst at IG in Sydney, referencing recent disappointments tied to China stimulus headlines over the past six months.
