Asian Shares Rise as Investors Await Market-Moving Reports

Asian shares mostly rose on Tuesday as investors awaited potentially market-moving reports later in the week. Japan’s Nikkei 225 surged 1.3%, Sydney’s S&P/ASX 200 rose 0.3%, and South Korea’s Kospi added 0.6%. In the US, the S&P 500, Dow Jones, and Nasdaq all posted gains.

This week, heavyweights like Amazon and Apple are set to report their first-quarter earnings, with results so far exceeding expectations. The stock market is looking for strength after a shaky April, where inflation concerns led to a 5.5% drop in the S&P 500.

Traders are now expecting fewer interest rate cuts from the Federal Reserve, with only one cut predicted for 2024. The Fed’s policy decision on Wednesday is not expected to change interest rates, but investors hope for clues on future rate cuts.

Fed Chair Jerome Powell may provide more insight during his news conference, especially on inflation and interest rates. Friday’s jobs report is also anticipated to show a cooling in hiring, impacting the Fed’s outlook on the economy.

In the bond market, the 10-year Treasury yield eased, while in energy trading, benchmark crude prices fell slightly. Currency trading saw the US dollar rise against the Japanese yen and the euro.

Overall, investors are cautiously optimistic as they navigate through earnings reports, Fed decisions, and economic data to gauge the market’s direction in the coming weeks.