Stocks Continue to Rise as Asian Stocks Reach New Highs – Asia Market Wrap

The rise in global stocks continued, with Asian shares trading above their record level as lessening trade tensions and confidence about interest rate decreases boosted mood.

MSCI’s regional stock index surpassed its previous high, with Chinese equities extending their gains ahead of a trade agreement with the US. An all-country index was also poised to reach a new high. Japanese stocks fell as Takaichi, a pro-stimulus candidate, won a vital vote to become Prime Minister.

Shares of rare-earths businesses rose following a US-Australia accord, but gold remained around record highs. Asian markets are gaining steam after the S&P 500 posted its largest two-day increase since June on Monday, with over 85% of businesses exceeding earnings projections thus far. Strong profits are giving extra legs to a tech-driven rise, as investors expect the Fed to drop interest rates later this month, just as trade tensions between the US and China ease.

On inflation statistics, the BLS plans to release September’s consumer price index on Friday, following a delay caused by the US government shutdown. The report, originally scheduled for October 15th, will provide Fed officials with a critical inflation figure ahead of their policy meeting on October 30th.

The 10-year Treasury yield fell below 4% as decreasing oil prices alleviated inflation concerns ahead of Friday’s consumer-price data release. Brent crude oil held around $60 per barrel, aiming for its lowest closing since May.