Asian Currency & Stocks Increase Prior to Profits – Asia Market Wrap

Asia’s stocks and currencies climbed as calm returned after a period of political upheaval, with traders shifting their focus to forthcoming tech earnings.

The MSCI Asia Pacific Index reversed a three-day drop, boosted by a rally in Taiwanese stocks. US equity futures fell following a 1.1% increase in the S&P 500, ahead of earnings from Tesla and Alphabet later Tuesday. Asian currencies rallied against a weaker dollar.

Markets are taking a breather after sky-high valuations and sectoral rotation triggered a massive tech selloff over the last few sessions. While the US election continues to dominate headlines, Kamala Harris now has more than enough pledged delegates to secure the Democratic presidential nomination, providing clarity on that front.

The Yen has gained ahead of the BoJ’s policy meeting next week. According to persons acquainted with the subject, some BoJ officials are willing to raise interest rates at the July meeting, but others believe sluggish consumer spending complicates their choice.