Asian stock markets followed Wall Street higher on Monday as investors looked ahead to a crowded week of corporate earnings, a possible US interest rate cut and other potentially market-moving events.
Benchmarks in Shanghai, Tokyo and Hong Kong all rose as fears about US-Chinese trade tension and Brexit receded. Markets shrugged off soft earnings from US companies, including Boeing and Caterpillar. Some 160 more companies are due to announce their earnings this week, including Alphabet, Apple, Facebook, General Electric and ExxonMobil. Investors are looking to the Federal Reserve for another US interest rate cut this week.
Central banks in Japan and Canada also are due to announce interest rate decisions. The US Treasury is due to report which governments are deemed to manipulate their currencies to boost exports, a designation that can trigger penalties.
A watch list issued in May included China, Japan and Germany. This will be one of the most substantial data and event risk weeks of the year,' said an expert, Mr. Jeffrey Halley.