Asian equities rose as traders anticipated the upcoming U.S. election and crucial economic data, which are expected to influence the Federal Reserve’s next decision.
Shares advanced in Hong Kong, Tokyo, and Australia, while equities in China fluctuated. U.S. futures declined slightly after the S&P 500 showed gains across most major sectors at the beginning of a key corporate earnings week. Treasury yields also eased.
In the currency market, the yen strengthened following Japanese Prime Minister Shigeru Ishiba’s commitment to restoring political stability after his ruling coalition fell short of securing a majority in the lower house.
Meanwhile, data revealed that investors withdrew funds from exchange-traded funds focused on Chinese stocks last week, marking an end to recent inflows as China’s latest stimulus measures failed to attract confidence.
In commodities, oil stabilized after a nearly 6% drop on Monday, its largest in over two years, as markets looked toward potential easing of tensions in the Middle East and awaited U.S. economic updates. Gold inched higher.
On Wall Street Monday, the Dow Jones Industrial Average rose 0.7% to 42,387.57, the S&P 500 increased 0.3% to 5,823.52, and the Nasdaq Composite also added 0.3% to 18,567.19.
Benchmark 10-year U.S. Treasury yields reached a three-month high, standing at 4.29% last night, up from 4.28% late on Friday, ahead of this week’s economic reports and the election.
