Asian Traders Optimistic as S&P 500 Record Holds: Markets Wrap

Asian stocks are set for a mainly positive open, with US equities holding near all-time highs as investors weighed tariff developments ahead of the megacap earnings season. Bond yields and the retreated.

Equity futures pointed to gains in Hong Kong and Sydney and a decline in Tokyo. The barely budged despite gains by more than 400 of its members, as a gauge of the giants halted a nine-day advance. The dollar weakened against its Group of 10 peers with focus on the tenure of Federal Reserve Chair Jerome Powell, while 10-year Treasuries and gold rose as a deadline on US tariffs added to demand for haven assets.

will be on full display over the next few weeks as the group begins unveiling quarterly earnings. The lion’s share of continues to come from beneficiaries of advancements in artificial intelligence.

The Magnificent Seven companies are expected to post a combined 14% rise in second-quarter profits, while earnings for the rest of the US equity benchmark are predicted to be relatively flat, according to Bloomberg Intelligence data.

“Tech heavyweights remain critical to market health,” said Lauren Goodwin at New York Life Investments. “We expect AI-driven firms to continue anchoring tech sector growth. AI adoption at the corporate level is improving, but the application layer of this technology is only just being tested.”

In Asia, Japan’s 40-year on Wednesday will be the first test of appetite for super-long debt following a historic election defeat for Prime Minister Shigeru Ishiba. Investors remain concerned over the outlook of bonds in one of the most indebted developed nations amid expectations of higher government spending as Ishiba tries to placate disaffected voters.

On the trade front, President Donald Trump unveiled an agreement with the Philippines setting a 19% tariff on the country’s exports. Canada’s prime minister Mark Carney sought to cool expectations about reaching a deal in the next 10 days, but said he’s looking to stabilize the relationship with the US.

Meanwhile, US Treasury Secretary Scott Bessent said he will his Chinese counterparts for trade talks in Stockholm next week, and will “be working out what is likely an extension” to the current Aug. 12 deadline for negotiations. He also said that the negotiations with China can now take on a broader array of topics, potentially including Beijing’s continued purchases of “sanctioned” oil from Russia and Iran.

Bessent told Fox Business he sees no reason for Powell to step down. Meanwhile, Trump stressed his belief that the Fed’s benchmark rate should be 3 percentage points lower. Bessent, in the same Oval Office event, said that “based on the way they cut rates last fall, they should be cutting rates now.”

“We expect market volatility to pick up in the lead-up to the August tariff deadline, with threats to Federal Reserve independence and geopolitical uncertainty lingering in the background,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.

Some of the main moves in markets:

Stocks

Currencies

Cryptocurrencies

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.