Asian markets opened the week mostly higher on Monday, with investors turning their attention to a crucial set of events that could shape global economic sentiment in the days ahead.
At the forefront is anticipation over the latest US inflation data, due Tuesday, which is expected to influence the Federal Reserve’s next policy move. Analysts say the Consumer Price Index (CPI) reading will be closely watched as mounting evidence points to a cooling American economy.
Recent figures, particularly from the labor market, have reinforced expectations that the Fed could cut interest rates at its September meeting—a move President Donald Trump has been publicly urging to stimulate growth.
Adding to the week’s significance, traders are awaiting Trump’s decision on whether to extend a temporary pause on tariffs targeting Chinese imports. The truce, brokered last month during ongoing trade tensions, is set to expire on Tuesday, but market watchers widely expect the US president to push back the deadline in a bid to keep negotiations on track.
On the geopolitical stage, attention is also fixed on Friday’s planned summit between Trump and Russian President Vladimir Putin in Alaska. The high-profile meeting could lead to a breakthrough in the Ukraine conflict, with speculation that any peace deal might be tied to a gradual easing of sanctions on Moscow.
In Monday’s early trading, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta all posted gains, buoyed by investor optimism. Singapore and Manila saw slight losses, while Tokyo’s market remained closed for a public holiday.
With a week packed with economic and diplomatic developments, market sentiment remains cautiously optimistic—but investors are well aware that outcomes on trade, inflation, and international diplomacy could quickly change the tone.
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