Asian Stocks Have a Wary Start as Futures Decline – Asia Market Wrap

Asian markets began the week modestly, as investors waited for progress in US trade talks with the region and signs of additional stimulus from China before making big bets.

A regional measure rose 0.6%, while S&P 500 futures fell 0.6%, implying that a four-day US markets surge may be coming to an end. Gold fell as much as 1.6% as traders unloaded positions amid signals that the metal’s rally had gone too far and too fast. Treasuries and the Dollar remained stable, but cryptocurrency prices fell.

Investors will be looking for indications of progress in US trade talks after Trump said another delay to his planned tariffs was unlikely. Asian economies geared for exports and facing some of the harshest US “reciprocal” tariffs are outperforming their western counterparts in trade negotiations with the administration.

To help manage the following steps, the Trump administration has developed a framework for negotiations with approximately 18 countries, which includes a template outlining shared areas of concern to steer the discussions.

On Monday, Chinese officials repeated their intention to enhance assistance for employment and the economy. Officials expressed confidence that the government will meet its economic targets this year. The PBOC also stated that it will maintain enough market liquidity and will reduce banks’ reserve requirements and interest rates in a “timely manner.”