Asian stocks edge up in cautious open, futures dip

Traders will also be on watch for any signs of progress in US trade negotiations after President Donald Trump suggested another delay to his higher tariffs was unlikely.

Asian shares edged higher at the open in a cautious start to the week as investors await progress in US trade negotiations with the region and signs of further stimulus from China.

Japanese and Australian stocks opened higher, while US equity-index futures dropped 0.5% in early trading Monday. Gold declined 0.3% while Treasuries and the dollar were steady.

Investors will focus on key economic data this week - the Bank of Japan’s rate decision, and US jobs report and gross domestic product data - to see if the recent steadiness in markets will continue as tariff tensions tamp down. US shares posted their longest advance in three months on Friday amid increasing expectations the Federal Reserve could ease policy again in the first half of this year as the American economy softens.

“After a solid week for global risk markets, we head into month-end and a risk event-heavy trading week, with a ‘cautiously optimistic’ stance,” wrote Chris Weston, head of research at Pepperstone Group Ltd. in Melbourne. “The noise from tariff negotiation remains deafening, but we’re seeing signs that markets have started to reduce their sensitivity to the tariff headlines.”

Traders will also be on watch for any signs of progress in US trade negotiations after President Donald Trump suggested another delay to his higher tariffs was unlikely. Asian nations are likely to strike interim deals to stave off the snapback of the most punitive US tariffs before the 90-day grace period expires in early July.

Also, US Treasury Secretary Scott Bessent said the Trump administration is working on bilateral trade deals with 17 key trading partners, not including China. Bessent reiterated the administration’s argument that Beijing will be forced to the negotiating table because China can’t sustain Trump’s latest tariff level of 145% on Chinese goods.

Worries about the economic fallout from tariffs drove US consumer sentiment to one of its lowest readings on record, while long-term inflation expectations climbed to the highest since 1991.

Meanwhile, China’s finance minister Lan Fo’an said the nation will adopt more proactive and effective policies to achieve its growth target and “bring stability and impetus to the global economy,” in a statement posted on the ministry’s Website on Saturday.

China will hold a press conference on Monday to discuss policies and measures on stabilizing employment, ensuring stable growth and promoting high-quality development.

The National Development and Reform Commission, Ministry of Human Resources and Social Security, Ministry of Commerce and the People’s Bank of China will jointly hold the briefing at 10 a.m. local time, according to a notice from the State Council Information Office.

“The real question is around what will be announced - will it be additional stimulus measures or the front-loading of already announced stimulus,” said Tony Sycamore, a market analyst at IG in Sydney. “Until further details are unveiled later today, the market will treat this news cautiously after being burned a number of times over the past six months chasing China stimulus headlines.”