Asian Stocks to Climb After Rally on Wall Street: Markets Wrap
Asian equities were primed to advance Friday after bullish corporate reports propelled US stocks to new highs ahead of earnings season.
Equity index futures for Japan, Australia and Hong Kong all gained, taking cues from a 0.3% rise for the Thursday. The US benchmark is up 6.8% this year having erased losses spurred by President Donald Trump ’s reciprocal tariff announcement three months ago.
The advance is a sign investors are shifting their focus from concerns about lower growth and higher inflation from tariffs to instead prepare for corporate earnings season, which unofficially begins in a few days.
The sentiment was supported by an upbeat forecast from while plans to expand its Robotaxi service to California and Arizona. rose to close above $4 trillion in market value for the first time. The chipmaker’s chief Jensen Huang was said to with Trump before a planned trip to China.
“The remarkable resilience of the US consumer – and in turn US companies – was the hero of the first half,” said Kristy Akullian , head of iShares Investment Strategy, Americas. “Going into Q2 earnings season, stocks could get an added boost from low expectations.”
Treasuries ended Thursday flat or lower across the curve, although steeper declines earlier in the session were pared after an auction of 30-year bonds drew . The result of the sale underscored robust appetite for longer-term debt, which this year has faced concerns about the US deficit and the impacts of tariffs.
The dollar wavered, gold climbed, oil fell and Bitcoin extended its record run. The decline for crude prices came as media reports indicated OPEC+ may . Meanwhile, Hong Kong authorities for the fourth time in two weeks to prevent the city’s currency from weakening beyond its official trading band.
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A drop in jobless claims in a period that included the Independence Day holiday was taken in stride. Federal Reserve Bank of San Francisco President Mary Daly said she still views two as likely this year and played down the potential inflationary impact of tariffs. Fed Bank of St. Louis President Alberto Musalem said it’s to know whether tariffs will have a persistent impact on prices.
“More tariff clarity should emerge as trade talks continue,” said Mark Haefele at UBS Global Wealth Management. “Declines in policy uncertainty have historically been positive for stocks, and we think US trade policy will move toward greater stability in the second half of the year.”
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In Asian corporate news, raised $4.5 billion from a junk-bond sale in US dollar and euros. The embattled automaker is a record-high coupon on at least one part of the deal to drum up demand.
Elsewhere, JPMorgan Chase & Co. is cutting the weight of bond issuers in its emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt.
Tariff Clarity
“There’s zero chance we’ll have tariff clarity by Aug. 1, which makes a July rate cut impossible,” said Tom Essaye of The Sevens Report. “The practical impact of this consistently delayed tariff policy is to reduce the chances of a September rate cut, which could leave rates higher for longer and increase the chances of an economic slowdown.”
Policymakers have held borrowing costs steady this year, but a divide has emerged over how many rate cuts officials expect in 2025. Fed officials will meet next July 29-30. Based on pricing in futures contracts, traders currently expect the central bank to slash rates twice this year.
Some of the main moves in markets:
Stocks
Currencies
Cryptocurrencies
Commodities
This story was produced with the assistance of Bloomberg Automation.
