Global Stocks Extend Rally as Tech Earnings and Trade Hopes Bolster Sentiment – Asia Market Wrap

Global equities kicked off November on a positive note, signaling the seven-month rally in risk assets may still have momentum amid robust tech earnings and signs of easing tensions between the US and China.

MSCI’s all-country world index climbed for the seventh time in eight sessions, buoyed by a 0.6% advance in Asian equities. Futures on the S&P 500 also rose after Friday’s gains, as optimism over corporate results outweighed concern that the rally remains heavily dependent on a handful of megacap tech firms. European contracts pointed to a brighter open, while Japan’s markets and cash Treasuries trading were closed for a holiday.

In commodities, gold fluctuated after initial losses triggered by China’s decision to scrap a long-standing tax incentive for the metal. West Texas Intermediate crude advanced 0.6% as OPEC+ opted to pause production increases, while iron ore retreated on renewed worries over China’s growth outlook.

Equities remain near record highs even after Federal Reserve Chair Jerome Powell cautioned that another rate cut in December isn’t guaranteed and as tech earnings delivered mixed signals. Trade relations also improved, with Beijing moving to suspend new export restrictions on rare earths and ending probes into US semiconductor firms, soothing market sentiment.

Elsewhere, Treasury futures edged higher while Australian bond yields climbed ahead of the Reserve Bank’s policy decision on Tuesday. The US dollar index steadied, with traders awaiting remarks from Fed officials for guidance on the central bank’s next moves.

Gold remained in focus after China’s tax shift, which could dampen consumer demand in one of the world’s largest bullion markets. The metal hit a record high in early October, fueled by retail investor demand, before retreating sharply in the latter half of the month.