Asian equities opened mostly higher on Monday as investors took cues from Wall Street’s steady close and a broadly positive earnings season in Europe, with gains led by technology and industrial stocks across the region. Markets responded to easing inflation signals and a stabilisation in US Treasury yields, though caution remained ahead of major economic data later in the week.
Asia opens with cautious optimism
Tokyo’s Nikkei 225 rose by 0.7% in early trade, buoyed by a rebound in chip-related stocks following a solid performance by US tech shares. South Korea’s Kospi also gained 0.5%, while Australia’s ASX 200 climbed 0.4% led by miners and energy firms reacting to firm commodity prices. Hong Kong’s Hang Seng Index, however, remained flat, weighed down by weakness in Chinese property shares and thin volumes due to summer trading conditions.
Mainland Chinese markets were subdued despite official efforts to boost domestic consumption. The Shanghai Composite inched up 0.2% as investors await key manufacturing and services PMIs due later in the week. The yuan traded steadily following indications from the People’s Bank of China that it will maintain supportive monetary policy, though no major new stimulus announcements were made.
Wall Street steadies on earnings strength
US equities closed mixed but broadly steady on Friday, with the S&P 500 gaining 0.03%, the Dow Jones Industrial Average edging up 0.15%, and the Nasdaq Composite slipping 0.12%. Corporate earnings helped offset macroeconomic concerns, with upbeat results from several industrials and consumer companies lending support.
Bond markets showed signs of calm after recent volatility, with the 10-year Treasury yield retreating slightly to 4.23% amid growing expectations that the Federal Reserve will maintain a cautious stance on further rate hikes. Investors are now looking ahead to Friday’s US non-farm payrolls report for fresh signals on labour market resilience and potential monetary policy shifts.
Europe lifted by earnings and soft inflation
European markets closed higher on Friday, supported by easing inflation pressures and better-than-expected earnings from major firms including Airbus, BNP Paribas, and Volkswagen. The pan-European Stoxx 600 rose 0.4%, while Germany’s DAX added 0.6% and France’s CAC 40 climbed 0.5%. The UK’s FTSE 100 gained 0.3%, with gains in financials and energy offsetting retail weakness.
Eurozone inflation data showed core prices slowing to 2.5% in July, reinforcing expectations that the European Central Bank may delay any further rate increases. The euro traded modestly higher against the dollar, reflecting growing confidence in the bloc’s monetary outlook.
Outlook ahead
Investors across regions are now turning their attention to a series of macroeconomic indicators, including China’s PMI data, the Bank of Japan’s policy meeting, and the US jobs report—all due this week. With central banks appearing more data-dependent, market momentum remains fragile and highly sensitive to economic surprises.
REFH – Newshub, 29 July 2025
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