Asian Markets Steady as Yen Gains, Wall Street Eyes Tech Earnings

Asian shares and the yen held steady Monday following Japan's upper house election, which weakened Prime Minister Shigeru Ishiba’s position but delivered no major surprises for investors. The yen firmed 0.4% to 148.29 per dollar, supported by a market holiday and Ishiba's vow to remain in power despite his ruling coalition's setback.

Analysts expect Ishiba to pursue looser fiscal policies, likely delaying Bank of Japan’s rate hikes until at least October. BOJ’s cautious stance is reinforced by political uncertainty, keeping yields in check.

Wall Street futures edged higher, with S&P 500 and Nasdaq futures both up 0.1%, driven by anticipation of strong earnings from mega-cap tech firms. Alphabet, Tesla, and IBM are among those set to report this week. Defense stocks like Lockheed Martin, RTX, and General Dynamics also remain in focus as global military spending boosts the aerospace and defense sector, which is up 30% this year.

In currency markets, the euro held at $1.1630, while the U.S. dollar index dipped slightly to 98.40. The Federal Reserve is seen pausing rate moves in July, with a 61% chance of a September cut, increasing to 80% in October. Fed Chair Jerome Powell’s cautious tone has drawn criticism from President Trump, although the threat to replace Powell appears to have receded.

Oil prices remained rangebound as OPEC+ supply concerns balanced potential EU sanctions on Russian crude. Brent rose 0.1% to $69.36, while U.S. crude gained 0.1% to $67.39. Gold was little changed at $3,348 an ounce, while platinum continued its rally, recently hitting its highest level since 2014.

Markets are closely watching U.S.-EU trade talks and the potential for a Trump-Xi meeting, likely in October.