Asia’s Record Stock Rally Pauses as Yen Gains Strength – Asia Market Wrap

Global markets have paused their record-breaking run as investors prepare for a flurry of earnings from megacap technology giants and policy pronouncements from major central banks this week.

Asian stocks lost 0.5%, and futures pointed to a lower opening in Europe. Japanese stocks fell from a high as the Yen recovered against the Dollar, ending a seven-session decline. Contracts for the S&P 500 were hat after the gauge finished at a record, as Chinese and US trade negotiators lined up a slew of diplomatic gains for Trump and Xi Jinping to announce at a conference this week.

Easing trade tensions have fuelled a stock surge, while US corporations have mostly avoided tariffs, protecting margins through pricing increases and expense cutbacks. That optimism will be tested this week as investors watch the Fed meeting for signs on the path of rate cuts, while key technology corporations such as Amazon and Microsoft reveal whether the earnings surge can be sustained.

Meanwhile, the Yen rose against the Dollar as US Treasury Secretary Bessent and newly appointed Japanese Finance Minister Katayama discussed exchange rate volatility.

In other market developments, the Yuan rose to its highest level in nearly a year, fuelled by optimism about a potential China-US trade agreement. The Dollar index fell for the second straight day. Gold remained below $4,000 per ounce as progress in trade talks reduced demand for haven assets.