Asian markets are poised to open the week with vigor, building upon the upward trajectory witnessed last week. The increasing risk appetite and optimistic outlook for a ‘soft landing’ of the U.S. economy, following Congress’s recent approval of a debt ceiling deal, have contributed to this positive sentiment.
On Friday, both regional and global markets experienced substantial gains, while measures of volatility declined significantly, thanks to the release of impressive U.S. job figures. Contrary to the adage “sell in May and go away,” investors are displaying a bullish attitude and actively engaging in buying activities.
Last week witnessed noteworthy movements in several major regional stock markets. On Friday, the MSCI Asia ex-Japan index recorded an impressive surge of over 2%, marking its strongest performance in the past five months. Japan’s Nikkei 225, reaching a remarkable 33-year high, experienced an eighth consecutive week of gains, marking its most successful run in five years. The Hang Seng tech index also made a significant recovery by snapping its longest streak of weekly losses on record and surging by 3.6%.
Looking ahead to Monday, the Asian and Pacific economic data calendar will be dominated by a series of purchasing managers index (PMI) reports. These reports will be particularly significant for key economies such as China, Japan, India, and Australia. Additionally, Indonesian inflation data will also be included in the mix, providing further insights into the region’s economic landscape.