Major indexes across the Asian stock market edged higher on Monday, supported by strong corporate earnings that bolstered high valuations in the tech sector. Meanwhile, investors awaited a key U.S. inflation report expected to influence the direction of the dollar and bond markets.
Although Japan’s stock market was closed for a holiday, Nikkei futures rose to 42,380, signaling that the cash index could challenge its all-time high of 42,426 this week. As of 6:23 GMT, the index was trading 1.85 percent higher at 41,820.48.
Trade and geopolitical tensions in focus
Trade and geopolitical tensions remain in focus as the U.S. tariff deadline on China approaches, with expectations it will be extended once again. Meanwhile, President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska on Friday to discuss the Ukraine war.
The key economic data this week is U.S. consumer prices, due Tuesday. Analysts forecast tariffs will push core inflation up 0.3 percent, bringing the annual rate to 3 percent, above the Federal Reserve’s 2 percent target.
A higher-than-expected inflation print could challenge market expectations of a September rate cut, though many analysts believe it would need to be significantly elevated given recent declines in payrolls that are weighing on the outlook.
Major indexes gain
In the European stock market, the EUROSTOXX 50 futures added 0.29 percent, while FTSE futures rose 0.03 percent and DAX futures gained 0.22 percent.
In the U.S. stock market, S&P 500 futures and Nasdaq futures both edged up to near record highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25 percent to 658.91, while South Korea’s KOSPI index fell 0.14 percent after gaining 2.9 percent last week.
China’s CSI 300 Index gained 0.46 percent after data revealed a slight increase in consumer price inflation in July, while producer prices continued to decline, reflecting how China’s vast manufacturing sector is exporting deflation globally.
Busy earnings week to set GCC market tone
In the GCC stock markets, investors may take cues from last week’s global equity rally, supported by expectations of an early U.S. interest rate cut. However, sentiment could be tempered by the recent decline in crude prices after OPEC+ confirmed a production increase from September.
According to Iridium Advisors’ weekly market report, this week’s earnings calendar includes results from regional giants, including AD Ports, Al Salam Bank, BASREC, BILDCO, GFH, GISS, GMPC, Invest Bank, Julphar, NBB, NGI, RAK Properties, TAQA, and Widam.
Earnings calls are also scheduled for Emaar Properties, Flynas, IQCD, Jazeera Airways, Salik, SEERA, SIIG and SPIMACO, among others.
U.S. data releases this week include inflation, retail sales and consumer sentiment, with tariffs remaining in focus. The Eurozone will report Q2 2025 GDP, industrial production and the August economic sentiment index, following the recent U.S.-EU trade deal. China will release FDI, industrial production and retail sales figures. In addition, Japan will publish the Q2 2025 GDP and July industrial production.
In commodity markets, gold declined 0.6 percent to $3,378 an ounce following volatile trading last week triggered by reports that the U.S. would impose 39 percent tariffs on certain gold bars—key exports from Switzerland. Gold futures trimmed gains on Friday after the White House announced plans to issue an executive order clarifying the U.S. position on gold bar tariffs.
Meanwhile, oil prices fell amid hopes that talks between Trump and Putin could lead to a ceasefire in Ukraine and a potential easing of sanctions on Russian oil exports. Brent crude dropped 0.6 percent to $66.22 a barrel, while U.S. crude eased 0.7 percent to $63.44 per barrel.
