Asian stock markets displayed a patchwork of moves on Monday as traders positioned themselves ahead of a key Federal Reserve meeting later in the week and a busy earnings schedule among major technology companies. U.S. equity futures were softer following a weak finish for U.S. indexes last week, setting the tone for cautious trading in the region.
Nikkei slides on yen strength
In Tokyo, the Nikkei 225 fell almost 2%, extending recent losses among exporter names after the yen strengthened sharply versus the U.S. dollar. The rapid rise in the yen has revived talk of coordinated currency intervention by Japanese and U.S. officials to support the currency, and investors reacted by favoring less risk-exposed positions.
A firmer yen typically reduces the overseas earnings of Japan’s exporters and can amplify risk-off dynamics in Tokyo’s trading session. The yen-led move also coincided with a notable bid for safe-haven assets, with gold rising to record levels as investors sought protection ahead of several upcoming global policy events.
Regional markets: mixed picture
Elsewhere in Asia, South Korea’s KOSPI eased by nearly 1% after earlier reaching record intraday peaks of 5,023.76 points. China’s Shanghai Composite was largely flat, showing limited directional movement in the session. Australia’s S&P/ASX 200 ticked up by 0.1%, while Singapore’s Straits Times Index declined about 0.4%. Markets in India were closed for a public holiday.
Fed meeting and earnings dominate attention
Traders are focused on the Federal Reserve meeting this week, where policymakers are widely expected to maintain the current interest rate level. Market participants will be parsing forward guidance closely for indications of future rate direction amid ongoing inflationary pressures. Remarks from Fed Chair Jerome Powell and other policymakers later in the week are expected to influence sentiment across global risk assets.
Investor focus also centers on a heavy technology earnings calendar, including quarterly results from a number of the so-called Magnificent Seven names such as Microsoft Corporation (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), Tesla Inc (NASDAQ:TSLA) and Apple Inc (NASDAQ:AAPL). These large-cap technology companies frequently set the tone for broader market moves.
In Asia, major technology firms including Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) are scheduled to report results, adding another regional layer to the earnings-driven market narrative.
Investor caution toward AI-linked equities remains evident. Technology shares have underperformed in some sessions as concerns persist about stretched valuations and rising costs tied to the development and deployment of artificial intelligence initiatives. Market participants are balancing long-term optimism about AI-driven growth with nearer-term macroeconomic and currency risks ahead of both policy and earnings catalysts.
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