Asian Markets Mixed as Trade Uncertainty Lingers, Eyes on U.S. Data and Tech Earnings

Asian shares started cautiously on Monday amid persistent uncertainty over U.S. trade policy, with a heavy week of economic data and major tech earnings ahead. Despite U.S. President Donald Trump’s claims of trade progress with China, Treasury Secretary Scott Bessent did not back the assertions, deepening investor unease. Christian Keller of Barclays warned that prolonged uncertainty is hurting both the U.S. and global economies, increasing recession risks.

Early trading saw MSCI’s broadest Asia-Pacific index outside Japan edge up 0.1%, Japan’s Nikkei climb 0.9%, and South Korea’s Kospi gain 0.2%. European futures rose slightly, while U.S. S&P 500 and Nasdaq futures slipped 0.4% and 0.5%, respectively. The S&P has recovered 12% from its April low but remains 10% below its peak. Although earnings have been solid with over 9% growth, the beat rate has dropped from 71% to 64%.

Investors are bracing for results from Apple, Microsoft, Amazon, and Meta, along with key U.S. reports on employment, GDP, and inflation. Payrolls are expected to rise by 135,000, though GDP growth may be muted due to a surge in gold imports. Futures imply a 64% chance of a Fed rate cut in June.

The dollar index steadied at 99.695, while the euro held at $1.1350. The Bank of Japan is expected to keep rates unchanged, and German inflation data could pressure the ECB toward another rate cut. Gold eased to $3,307 an ounce after touching record highs, and Brent crude rose slightly to $66.98 a barrel amid global growth concerns.