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A flag of Japan flies near cargo containers at Tokyo's Odaiba Waterfront on August 6, 2020.
BEHROUZ MEHRI | Contributor | Getty Images
Asia-Pacific markets are set to open higher on Tuesday, following gains on Wall Street that saw the Dow Jones Industrial Average reach a record close amid a strong start to the earnings season.
Investors in Asia will asses trade data out of Japan and job numbers out of Australia set for release later in the day.
Japan's Nikkei 225 futures pointed to a higher open for the market, with the futures contract in Chicago at 39,570 and its counterpart in Osaka at 39,470 compared to the benchmark's previous close of 39,180.3.
Japan's exports are expected to grow 0.5% year-over-year for September, down from a revised rate of 5.6% in August, according to economists polled by Reuters. Meanwhile, imports are expected to have grown 3.2% in September compared to 2.3% the month prior.
Australia's S&P/ASX 200 rose 0.88% in early trading.
Australia's unemployment rate for the month of September is expected to remain unchanged from August at 4.2%.
Hong Kong Hang Seng index futures were at 20,482, higher than the HSI's last close of 20,286.85.
Overnight in the U.S., the Dow Jones gained 337.28 points, or 0.79%, to ended at 43,077.70.
The S&P 500 added 0.47% to 5,842.47, while the Nasdaq Composite jumped 0.28% to close at 18,367.08.
— CNBC's Lisa Kailai Han and Jesse Pound contributed to this report.
CNBC Pro: These 9 biotech stocks have doubled this year and are set to double again, analysts say
Nine healthcare stocks have more than doubled this year and yet have more than 100% upside potential, according to analysts.
CNBC Pro screened more than 85,000 equities worldwide for stocks that had risen by 100% in 2024, researched by at least five or more analysts, and a median price target pointing to more than 100% upside potential.
The bio tech stocks have on average risen by 188% this year and have a median upside potential of 150%.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Barclays names UK ‘conviction’ stock ideas for the fourth quarter — giving two over 35% upside
Barclays has named a raft of global stocks for investors to consider buying before the end of the year, naming "conviction stock ideas with catalysts."
The bank's list includes six overweight-rated stocks from the U.K., two of which it gave over 35% upside.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
Analysts finally begin lowering 2025 earnings growth rate, Strategas says
With the third-quarter earnings season fully underway, analysts have finally begun lowering the bar for their expectations, according to Strategas.
"The traditional EPS decay that S&P EPS typically undergo has largely been avoided for 2025 up until this point. However, analysts have finally begun to revise figures lower in tandem with revising 2024 figures lower as well. Current figures still reflect a nearly 15% growth rate for CY '25 on top of margin expectations to be the highest on record if these earnings figures come to fruition," said strategist Ryan Grabinski.
In the third quarter, Grabinski expects that technology stocks were the biggest contributor to earnings growth, while energy was the biggest detractor.
— Lisa Kailai Han
UBS says to stay invested, despite stocks trading near all-time highs
Equities may be trading at their all-time highs, but UBS says this is no time to cash out.
"Our analysis of the past 60+ years shows that S&P 500 returns in the 3, 6, and 12 months following an all-time high are basically the same as all other periods," the firm wrote in a note to clients. "At the same time, we anticipate the macroeconomic and earnings environments to remain favorable, which supports staying invested in equities."
However, the bank believes economic growth will slow from here, thereby recommending investors stay selective and focused on "quality companies with strong balance sheets and consistent earnings." Many companies that meet this criteria are in the tech sector, UBS said.
— Lisa Kailai Han
Bank of America says labor market will continue to soften despite strong September report
The strong September jobs report was enough to convince the Federal Reserve that it needed to readjust the pace of its interest rate reductions. But Bank of America is not convinced that this strength in the labor market is here to stay.
"The bottom line is that we don't think there was sufficient evidence to change our soft-landing outlook for the labor market," wrote U.S. economist Shruti Mishra. "Following the strong September employment report print, we revised our Fed call but made no change to our labor market outlook."
Mishra pointed to three reasons for her skepticism.
First of all, job growth was narrow, as the so-called "catch-up sectors" such as leisure, education and government roles made up most of the job increases in September. The month is also traditionally seasonally noisy due to schools restarting and summer jobs ending. Lastly, Mishra pointed out that the report only encompassed one month of data.
— Lisa Kailai Han
Bank funds rally as earnings roll in
Small caps outperform
Small-cap stocks outperformed Wednesday, with the iShares Russell 2000 ETF (IWM) up 1.6% and on pace for a fourth straight day of gains. That's compared to the S&P 500's 0.3% rise.
Week to date, the IWM is higher by 2.4%, while the broad market index has gained 0.3%.
IWM
Small caps are showing signs of life after the Federal Reserve's big half-point rate cut in September bolstered investor sentiment in the asset class.
— Sarah Min
English (US) ·