Progress in Australia, Japan and South Korea rose 0.4% after the S&P 500 climbed for the sixth straight day. U.S. debt was whipped Monday, and the treasury was stable within the open scope of Asia. The U.S. stock resident futures are higher. Gold with 0.2% at the previous session fell by 0.2%.
European and U.S. stocks revoked a downgrade in U.S. credit ratings, saying the government is determined to lower spending and boost economic development after Treasury Secretary Scott Bessent understates concerns. Asian investors have also been paying attention to the outcome of U.S. trade talks with India and Japan after raising optimism with China.
“Finding a fresh market catalyst starts,” said Chris Larkin of Morgan Stanley’s E* trade. “The S&P 500 ended a year last week, just a little more than its all-time high of 3%. Whether it’s one thing to close the gap in the near future, it’s one thing, and maintaining a rally beyond it is another.”
Meanwhile, the Chinese government accused the Trump administration of warning that artificial intelligence chips using Huawei Technologies Co., Ltd. “Anywhere in the world” have disrupted recent trade negotiations in Geneva. The Ministry of Commerce of Asian countries asked the United States to “correct its mistakes” in a statement.
India is discussing a U.S. trade deal with three branches and hopes to reach a temporary deal by July when President Donald Trump’s reciprocity tariffs will begin to kick off, according to officials familiar with the matter in New Delhi. Economists and money markets expect Royal Bank to announce a cut of a quarter-point position to bring its cash exchange rate to a two-year low of 3.85%. Nevertheless, they believe Gov. Michele Bullock may be reluctant to ease further when he appears in front of reporters late Tuesday.
In corporate news, Contemporary Ampere Technology Co., Ltd. will begin trading in Hong Kong on Tuesday after the Chinese battery giant wrapped up the world’s largest listing this year, raising HK$35.7 billion (US$4.6 billion) despite being included in the Pentagon and grinded through geopolitical storms.
Back in the United States, some strategists say any callback may be a buying opportunity.
Thomas Lee of FundStrat Global Advisors believes Moody’s downgrade is “largely no event”, while adding that he will “actively buy this dip” in any stock weak situation. David Kostin, strategist at Goldman Sachs Group Inc., expects the “magnificent seven” technology stocks to return to outperform the broader S&P 500 on strong revenue trends.
In addition, two Fed officials, including New York Fed Chief John Williams, said policymakers may not be ready to lower interest rates when facing a blurred economic outlook in September.
Federal Reserve Vice Chairman Philip Jefferson also highlighted an observant approach at the Atlanta Fed 2025 Financial Markets Conference on Monday. For the Fed, he said, any potential increase in ensuring that price increases does not develop into sustained growth in inflation.
Now, when policymakers meet in Washington from June 17 to 18, investors see less than 10% chances of lowering interest rates. Based on the pricing of Fed fund futures, investors expect to drop by one-two by the end of the year, down from four at the end of April.
In commodities, oil stabilized in negotiations between Russia and Ukraine and between the US and Iranian concerns after two days of gains.
