This content was published on <\/p>\n
August 5, 2025 – 04:57\n<\/p>\n
(Bloomberg) \u2014 Asian stocks advanced on renewed risk appetite, as a wave of dip buying combined with growing bets on potential interest-rate cuts lifted investor sentiment.<\/p>\n
The MSCI Asia Pacific Index rose 0.5%, as South Korean shares gained 1%. Oil steadied after a three-day drop as investors weighed risks to Russian supplies, with US President Donald Trump stepping up his threat to penalize India for buying Moscow\u2019s crude. Treasuries and a gauge of the dollar were little changed.<\/p>\n
Contracts for the S&P 500 gained 0.1% after the index had its biggest rally since May.<\/p>\n
Traders are increasingly pricing in interest rate cuts by the Federal Reserve after Friday\u2019s weak jobs report, which dragged down stocks and sent bond prices sharply higher. Equities have rebounded sharply from their April lows, driven by growing optimism that corporate America can absorb the impact from tariffs and the US economy will be able to avoid a recession.<\/p>\n
\u201cIt looks like today everyone is following the upward trend in US stocks,\u201d said Hiroshi Namioka, chief strategist at T&D Asset Management. \u201cIt\u2019s a bumpy road, and investors are still mindful of the possibility of a recession. But signs of growth, particularly in US tech stocks, are helping sentiment.\u201d<\/p>\n
After the jobs data on Friday, the markets were implying a roughly 80% chance of a rate cut at the next Fed meeting. Following last night\u2019s trade, those odds have increased to nearly 95%, wrote Kyle Rodda, a senior market analyst at Capital.com in Melbourne.<\/p>\n
There\u2019s a \u201c99% chance\u201d that Fed will cut rates by 25 basis points in September, Rachana Mehta, a regional fixed income co-head at Maybank Asset Management said in a Bloomberg TV interview.<\/p>\n
Fed San Francisco President Mary Daly said the time is nearing for rate cuts given mounting evidence that the job market is softening and there are no signs of persistent tariff-driven inflation, Reuters reported.<\/p>\n
\u201cI was willing to wait another cycle, but I can\u2019t wait forever,\u201d Daly said of the Fed\u2019s decision last week.<\/p>\n
Tech megacaps led gains Monday, rebounding from recent selling pressure, with Nvidia Corp. and Meta Platforms Inc. each surging at least 3.5%.<\/p>\n
S&P 500 earnings are crushing second-quarter expectations \u2014 up 9.1%, triple the pre-season forecast and the strongest beat rate since 2021, according to data compiled by Bloomberg Intelligence.<\/p>\n
Monday\u2019s jump in stocks prompted a comment from Trump, who said it was a \u201cGood day in the Stock Market\u201d and there will be many more days like this.<\/p>\n
\u201cAmerica is very rich again, and stronger than ever before,\u201d Trump wrote on his Truth Social platform Monday.<\/p>\n
Still, a chorus of stock market prognosticators at some of Wall Street\u2019s biggest firms are warning clients to prepare for a pullback as sky-high equity valuations slam into souring economic data.<\/p>\n
On Monday, Morgan Stanley, Deutsche Bank AG and Evercore ISI all cautioned that the S&P 500 Index is due for a near-term drop in the weeks and months ahead. The predictions come after a furious rally from April\u2019s lows that propelled the gauge to levels it has never seen before.<\/p>\n
In Asia, investors will also be focused on an auction of 10-year Japanese government bonds later Tuesday. Some market participants expect the sale to be weak following the recent decline in yields.<\/p>\n
On the tariff front, the European Union is expecting Trump to announce executive actions this week to formalize the bloc\u2019s lower levies for cars and grant exemptions from levies for some industrial goods such as aviation parts, according to people familiar with the matter. Meanwhile, the Swiss government said it is determined to win over Washington after last week\u2019s shock announcement of 39% levies on exports to America.<\/p>\n
Meanwhile, Trump also said he would be \u201csubstantially raising\u201d the tariff on Indian exports to the US over the Asian nation\u2019s purchases of Russian oil, a move New Delhi slammed as unjustified in an escalating fight between the two major economies.<\/p>\n
\u201cTariffs are going to come back to haunt us on a periodic basis going forward,\u201d said Aidan Yao, senior investment strategist for Asia at Amundi Investment Institute in Hong Kong told Bloomberg TV. \u201cWe\u2019re in a very volatile ceasefire, but this is not a credible end to the trade war.\u201d<\/p>\n
Corporate News:<\/p>\n
Palantir Technologies Inc. reported a 48% increase in revenue for the second quarter to more than $1 billion, citing the \u201castonishing impact\u201d of artificial intelligence technology on its business. Tesla Inc. approved an interim stock award worth about $30 billion for Chief Executive Officer Elon Musk, a massive payout meant to keep the billionaire\u2019s attention on the automaker as a legal fight over a 2018 pay package drags on. Meanwhile, shipments from Tesla Inc.\u2019s Shanghai factory slipped back into decline on intense competition in China and global trade uncertainties. Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
S&P 500 futures rose 0.1% as of 11:54 a.m. Tokyo time Japan\u2019s Topix rose 0.8% Australia\u2019s S&P\/ASX 200 rose 1% Hong Kong\u2019s Hang Seng was little changed The Shanghai Composite rose 0.4% Euro Stoxx 50 futures rose 0.1% Currencies<\/p>\n
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1561 The Japanese yen was little changed at 147.14 per dollar The offshore yuan was little changed at 7.1835 per dollar Cryptocurrencies<\/p>\n
Bitcoin was little changed at $114,744.65 Ether fell 0.6% to $3,677.31 Bonds<\/p>\n
The yield on 10-year Treasuries was little changed at 4.20% Japan\u2019s 10-year yield declined three basis points to 1.470% Australia\u2019s 10-year yield declined 10 basis points to 4.21% Commodities<\/p>\n
West Texas Intermediate crude fell 0.2% to $66.15 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.<\/p>\n
\u2013With assistance from Alice French, Abhishek Vishnoi and Joanne Wong.<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"This content was published on August 5, 2025 – 04:57 (Bloomberg) \u2014 Asian stocks advanced on renewed risk…\n","protected":false},"author":2,"featured_media":10407,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,63,5471,99,12354,13895,171,2004,12355],"class_list":["post-44385","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-au","tag-australia","tag-bonds","tag-business","tag-business-general","tag-currency-values","tag-markets","tag-stocks","tag-ticker"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/44385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=44385"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/44385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/10407"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=44385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=44385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=44385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}