Before the US Return, Stocks Are Wary as Gold Sets a Record – Asia Market Wrap

Stocks remained flat as traders anticipated Wall Street’s reopening following the long weekend for guidance in what has historically been the weakest month for US shares.

A gauge of Asian markets fluctuated between minor gains and losses, while equity-index futures in the United States and Europe dipped lower. Gold rose to a new high on Tuesday, with speculators expecting the Fed to slash interest rates this month.

The Treasury curve steepened as cash trading resumed after the Monday holiday. The yield on the 10-year benchmark increased by nearly 2 bps to 4.25%. Oil prices rose as attention shifted to the next OPEC+ conference.

In Japan, 10-year bonds rose following the highest auction since 2023. The Yen lost 0.3% against the Dollar as BoJ’s Himino’s speech provided no insight into the future path of interest rates.

Meanwhile, Trump said India offered to lower its tariff rates after the US imposed 50% duties last week as retaliation for the South Asian country’s imports of Russian oil.