Tech Earnings in Focus as Stocks Edge Higher Ahead of Fed – Asia Market Wrap
US equity futures moved higher as investors positioned for a wave of earnings from major technology firms during what has been a broadly positive reporting season. Markets are also awaiting the Federal Reserve’s policy decision.
Nasdaq 100 futures rose 0.5%, with Alphabet, Microsoft, Amazon and Meta all scheduled to report on Wednesday. S&P 500 futures also advanced, while MSCI’s Asia Pacific index gained 0.3%. European markets were set for a modest rise.
Brent crude was volatile before slipping 0.1% to $111.19 a barrel. Prices had earlier climbed close to $112 following a report that President Donald Trump had asked aides to prepare for a prolonged blockade of Iran, a move that could keep the Strait of Hormuz effectively closed.
The upbeat tone in Asia sets the stage for a pivotal trading session, with megacap tech earnings and the Fed decision both in focus. Technology stocks have driven the recent rebound in global equities, helping markets recover losses linked to the Middle East conflict, making this week’s results critical to sustaining momentum.
Elsewhere, Treasury futures were little changed after declines in the previous session, when rising oil prices lifted inflation expectations and reduced bets on near-term rate cuts. Cash Treasury trading was closed during Asian hours due to a holiday in Japan and is set to resume in London.
Gold edged higher to around $4,600 an ounce, while Bitcoin led gains among cryptocurrencies, trading near $77,275.
Artificial intelligence remains a key driver in Asia’s markets. After initially lagging US equities following the Iran conflict, the region has rebounded strongly on AI optimism. The MSCI Asia Pacific index has climbed about 14% this month, on track for its best performance since November 2022, outpacing the S&P 500’s roughly 9.3% advance.
