Shares climbed for the second consecutive session on Monday as investors shifted their attention to crucial U.S. economic data expected this week, seeking insights into the health of the world’s largest economy. A broad gauge of Asian equities rose, with benchmarks in Hong Kong, Taiwan, Australia, and Korea all advancing. European and U.S. futures were also in positive territory, reflecting a more optimistic market sentiment.
Markets in Japan were closed due to a public holiday, but across the region, a sense of calm returned after the previous week’s turbulence, driven by concerns that the Federal Reserve might delay cutting interest rates. The Cboe Volatility Index, often referred to as Wall Street’s fear gauge, has eased from its highest levels since the early days of the COVID-19 pandemic.
Haven currencies, such as the yen and the Swiss franc, saw declines on Monday as risk appetite improved. Analysts at Nomura Holdings Inc. noted in a report that while uncertainty remains, there are indications that the markets may be heading towards a period of relative stability. They cited diminished fears of a U.S. recession and lower expectations of aggressive tightening by the Bank of Japan as reasons for cautious optimism.
As the week unfolds, market participants will closely watch the U.S. data prints for further direction, with the potential to influence global market trends.
