Asian markets wobble as key trading week kicks off, US data in focus
Asian equities open strong as investors eye US inflation data
Asian markets started Monday on a positive note, with gains in Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta. Investors are looking ahead to a week dominated by speculation about US inflation, a possible pause in Washington’s tariffs on China, and a high‑stakes summit between President Trump and Russian President Vladimir Putin.
Key events to monitor
- US‑China tariff truce deadline – The 90‑day pause reached last month is set to expire Tuesday. Analysts expect President Trump to announce a new extension, which could keep trade tensions from flaring.
- US consumer price index (CPI) – The CPI report on Tuesday may influence the Federal Reserve’s next policy decision. The central bank has been under pressure to cut rates and investors are betting on a September meeting.
- US job reports – The latest job data indicate the world’s largest economy is slowing, further supporting expectations of lower borrowing costs.
- Trump‑Putin summit – A meeting in Alaska on Friday could pave the way for a Ukraine‑war deal that eases sanctions on Moscow. The outcome will be closely watched by markets.
Market reactions
- Asian stocks – Hong Kong’s Hang Seng Index rose 0.2 %, Shanghai’s Composite Index increased 0.3 %..
- Currency moves – The pound beat the dollar at $1.3457, the euro surpassed the dollar at $1.1667, and the euro climbed 0.1 pence against the pound.
- Commodities – West Texas Intermediate fell 0.6 % to $63.50 per barrel, while Brent North Sea Crude declined 0.5 % to $66.27 per barrel.
- US equities – The Dow closed up 0.5 % at 44,175.61.
- London FTSE 100 – The index slipped 0.1 % to 9,095.73 on Monday.
Trade‑tension sentiment
Analysts note that the market has “fully subscribed to the high probability of the tariff truce being rolled over for another 90 days.” Chris Weston of Pepperstone added that unless diplomatic talks break down, an extension announcement should not move markets too intensely.
Gold and artificial intelligence focus
Gold futures edged lower after Friday’s record high, as an unexpected tariff on the precious metal sent prices slightly lower. Despite lingering uncertainty around trade, investors remain optimistic about artificial intelligence. Beijing and Washington are competing fiercely in AI, and Monday’s reports revealed that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 % of their revenue from selling AI chips to China.
Investors are betting that AI will transform the global economy. Last month, Nvidia— the world’s leading semiconductor producer— became the first company ever to hit $4 trillion in market value.
