Asia’s markets experienced gains on Monday, following encouraging developments in trade negotiations between the United States and Canada. This uplift in investor sentiment comes as Canada rescinded its digital services tax, a move aimed at advancing trade talks and addressing U.S. concerns under President Donald Trump.
Investors remain cautious about the upcoming U.S. jobs report, which may indicate a juncture for Federal Reserve’s rate cut decisions. Analysts predict a possible uptick in the jobless rate to 4.3%, sparking speculations about a July rate cut. Amidst these dynamics, U.S. tech stocks and Asia-Pacific shares remain strong drivers of growth.
In global currency markets, the dollar’s performance has been dampened by tariff concerns and U.S. policy uncertainties, while other currencies, such as the euro and sterling, hover near recent peaks. The prospect of policy easing is helping stabilize Treasury yields despite budget deficit worries.
