(Bloomberg) -- Asian stocks were primed for a mixed start Tuesday as investors await fresh catalysts after US markets were closed for a holiday Monday.
Futures for equity benchmarks in Australia and Japan were little changed, while those for Hong Kong moved up. A gauge of global stocks sits just 1.1% from its peak after the S&P 500 set a fresh record last week, while the region-wide Euro Stoxx 50 trades near a two-decade high.
Trading in Treasuries was also shut Monday. An index of the dollar was little changed, while the yen was flat at around 150 per dollar — a level it held in early Asian trading Tuesday. Australia and New Zealand 10-year yields edged higher in early trading.
In China, mainland gauges were higher Monday in the first session back following the Chinese New Year holiday. Hong Kong gauges, which resumed trading last week, fell. A rise in trading volume for several exchange-traded funds in China offered a clue that state-backed funds were continuing to support the market.
China loan prime rates data are expected on Tuesday, while the Reserve Bank of Australia is due to release minutes from its February meeting.
BHP Group, the world’s largest miner, reported $6.57 billion in underlying profits, less than consensus estimates, and said demand from top customer China was healthy despite weakness in housing.
Interest rate expectations remain firmly in focus. Swaps are now pricing about 90 basis points of Federal Reserve rate cuts in 2024 — from more than 150 basis points at the start of February. In Europe, wagers have been whittled down to about 100 basis points, from 150.
“Markets have adjusted to the idea that rate cuts would come later and probably be less important than what was originally priced,” Vincent Juvyns, global market strategist for JPMorgan Asset Management, said on Bloomberg Television. The move upward is also “really driven by decent earnings growth that we have seen during the fourth quarter,” he added.
Earnings from bellwether Nvidia Corp. Wednesday could provide new impetus for equities as investors try to gauge the strength of the global economy. The chip giant has surpassed the market value of Amazon.com Inc on the expectation it will be a big winner from artificial intelligence developments.
Other potential catalysts for markets this week include Fed January meeting minutes to be released Wednesday and Eurozone inflation data due Thursday.
Elsewhere, gold edged higher Monday to trade around $2,017 per ounce. West Texas Intermediate was slightly higher against the backdrop of ongoing tensions in the Red Sea, a vital trade route.