- Asian stocks rose on Monday, as positive momentum from Wall Street gains and signs of slowing US inflation extended the year's rally in global stocks. The yuan rose after China's central bank set a stronger-than-expected currency fix.
- Japan's Topix index was on track for another gain, continuing a trend that has seen the index set new highs since the mid-1990s. Equities rose in South Korea, Australia, and China, with Hong Kong-listed technology shares leading the way.
- According to the Bank of Japan's manufacturing sentiment index, confidence among the nation's large manufacturers increased for the first time in nearly two years. Sentiment among non-manufacturers was also higher.
- US equity futures were flat in the early hours of Monday in Asia. The Nasdaq 100 gained nearly 2% last week, marking its best-ever first-half performance, with Apple passing the $3 trillion mark along the way. The S&P 500 hit its highest level since April 2022 and had its best first half since 2019.
- Traders were encouraged by data showing that inflation is slowing, even if at the expense of growth. One of the Federal Reserve's preferred inflation gauges, the personal consumption expenditures price index, rose 0.1% in May. The measure fell to 3.8% from a year ago, the smallest annual increase in more than two years.
- The bond market remained quiet on Friday after an eventful first half for the rates market. Treasuries held steady on Monday, while three-year Australian government bond yields fell nearly seven basis points.
