Find more details about Asian Stocks Gain for Third Day as US Futures Slip
Asian equities rose as China announced further initiatives to boost demand. US equities futures fell as Treasury Secretary Scott Bessent described the market’s recent drop as healthy. Stocks increased in Australia, Japan, and South Korea in early Monday trading, with Hong Kong futures indicating a more substantial open. The gains came after the S&P 500 rose 2.1% on Friday as the government avoided a shutdown, and the tech-heavy Nasdaq 100 surged 2.1%. The Golden Dragon index increased 2.7% as Chinese authorities prepared to unveil steps to encourage consumption on Monday. The dollar remained unchanged.
All eyes are on China after Xinhua reported that officials will reveal information about strategies to stabilize the stock and real estate markets, raise salaries, and increase the country’s birth rate. A swath of Chinese statistics, including industrial output and retail sales figures for February expected Monday, will be heavily scrutinized. “The measures launched over the weekend aim to boost the declining animal spirits of the Chinese consumer,” said Tony Sycamore, an analyst at IG in Sydney. Our findings “should contribute to the calm rally in global equity markets that started on Friday and the ongoing surpass of China equity markets.”
Investors will watch several central bank meetings this week as President Donald Trump’s trade wars strain regulators’ nerves. The Bank of Japan is predicted to maintain its rate after a raise last month, while the Bank of England is expected to remain unchanged. Federal Reserve Chairman Jerome Powell Jerome confronts the problematic challenge of persuading investors that the economy is on firm ground while also demonstrating that authorities are prepared to intervene. “Markets will closely examine the revised Summary of Economic Projections,” which are anticipated to cut projections by the Fed for economic growth and adjust core inflation expectations a bit higher, Commonwealth Bank of Australia analysts, including Joseph Capurs,o said in the note to clients.
“Markets will closely examine the updated Summary of Economic Projections,” which are anticipated to cut Fed projections for economic growth while somewhat raising core inflation expectations, Commonwealth Bank of Australia analysts, including Joseph Capurso, said in a note to clients. “However, the ‘dot plot,’ wh,’h represents members closes members attention of the Funds rate at the end of each calendar year, could stay the same if FOMC members expect the increase in core inflation to be temporary.” Separately, German Chancellor-in-waiting Friedrich Merz said Friday that he had secured a deal with the Green Party on the debt-financed defense and infrastructure package. The euro rose for a second week, remaining around its best versus the greenback since November.