Asian stocks rose along with equity-index futures as record-high US stocks and progress in trade negotiations boosted risk appetite.
The MSCI Asia-Pacific index advanced 0.3% at the open Monday. The Nikkei 225 index jumped by more than 1% after Japan’s top negotiator extended his stay in the US for further trade talks ahead of a July 9 deadline. Contracts for the S&P 500 index and the Nasdaq 100 rose 0.3%. A gauge of the dollar dipped 0.1% as Senate negotiations continued over President Donald Trump’s $4.5 trillion tax-cut package.
Crude oil fell 1% as traders wound back risk premiums before the OPEC+ meeting. Treasuries slipped, with the yield on the 10-year rising about 1 basis point to 4.28%.
On Friday, US stocks rose to a fresh all-time high for the first time since February, underscoring the conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a boost for equities. A gauge of Asian stocks is set to climb more than 4% for a second month as investors look past tariff angst and recent tensions the Middle East.
“The momentum and trends seen in risky markets portray an almost nirvana environment in which to operate,” Chris Weston, head of research at Pepperstone Group, wrote in a note. Rapid reduction of geopolitical risks and expectations about imminent trade deals are “all adding tailwinds to risk markets.”
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