This is CNBC’s live blog covering Asia-Pacific markets.
Australia stocks opened flat Tuesday as investors assessed trade developments between the U.S. and countries in the Asia-Pacific region, with focus also on Asian currencies that have been strengthening on the back of a declining dollar.
India has reportedly proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis and up to a certain amount of imports, while Malaysia said Monday that Washington had agreed for further talks and there could be a cut in tariffs.
Treasury Secretary Scott Bessent told CNBC Monday that U.S. was “very close to some deals,” echoing comments from U.S. President Donald Trump a day earlier that there could be some agreements as early as this week.
Australia’s S&P/ASX 200 benchmark inched 0.04% higher in early trade.
China stocks will resume trading after the Labor Day holidays amid signs of Washington and Beijing taking a more conciliatory approach to resolving trade disputes after resorting to tit-for-tat tariffs.
The country’s April reading for the Caixin Services Purchasing Managers’ Index — which measures the health of China’s non-manufacturing sector — is expected later in the day.
Futures for Hong Kong’s Hang Seng index stood at 22,597 pointing to a slightly higher open compared to the HSI’s last close of 22,504.68.
Japanese and South Korean markets are closed for public holidays.
U.S. stock futures were little changed as investors awaited the start of the Federal Reserve’s first policy meeting since U.S. President Donald Trump announced “reciprocal” tariffs in early April. The two-day policy meeting will begin on Tuesday stateside, with a rate decision expected Wednesday. Fed funds futures trading points to just a 2.7% chance of a rate cut, according to the CME Group’s FedWatch tool.
Overnight stateside, stocks fell with the S&P 500 ending a nine-day rally as investors monitored the latest developments on global trade.
The broad-market index shed 0.64% to close at 5,650.38, while the Nasdaq Composite dipped 0.74% to end at 17,844.24. The Dow Jones Industrial Average dropped 98.60 points, or 0.24%, to settle at 41,218.83. The S&P 500 came into the session riding a nine-day winning streak, its longest since 2004..
— CNBC’s Pia Singh and Hakyung Kim contributed to this report.
Recent market volatility could end up being an attractive buying opportunity, says Altimeter Capital’s Brad Gerstner
Investors may look back on market volatility in 2025 as a missed buying opportunity, according to Altimeter Capital CEO and founder Brad Gerstner.
While he expects some volatility to persist in the near-term, he told CNBC’s “Halftime Report” on Monday that he expects President Donald Trump to soon make progress on trade deals which will spur gains for stocks.
Gerstner also noted that Trump’s rhetoric on looser regulations could also be a boon for U.S. equities, which is another aspect of the president’s agenda that Wall Street could perhaps be underappreciating, he said.
— Brian Evans
Bank of America upgrades energy sector despite falling oil prices
Pumpjacks are seen in oilfields along Highway 33, known as the Petroleum Highway, west of Buttonwillow, Kern County, California on April 9, 2025.
Bank of America has upgraded energy to overweight despite the sector pulling back nearly 6% so far this year on tumbling oil prices.
Despite the sector’s poor performance, Bank of America analysts said oil companies are still paying “dividends, baby, dividends.” Executives’ compensation is tied to cash returns not production targets with dividends now sacrosanct. The sector’s free cash flow yield is also well above average at 6%, according to Bank of America.
And the sector’s sensitivity to oil prices has dropped by more than third since 2017, according to the bank. If stagflation is considered the base case, “energy is more likely to outperform than underperform,” the analysts told clients on Friday.
Oil prices are down about 20% this year with U.S. crude having closed Monday at its lowest level since 2021.
— Spencer Kimball
