ARTICLE AD BOX
SHANGHAI, CHINA - APRIL 29: Pedestrians walk by lampposts decorated with Chinese national flags prior to May Day holiday on April 29, 2025 in Shanghai, China. (Photo by Wang Gang/VCG via Getty Images)
Vcg | Visual China Group | Getty Images
Asia-Pacific markets were set to trade mixed Tuesday, as investors assess trade developments between the U.S. and countries in the region, with focus also on Asian currencies that have strengthened as the greenback declines.
//let's add US statements about possible trade deals, talks with regional leaders to back up the lead//
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.
Australia's S&P/ASX 200 was set to open flat, with futures tied to the benchmark at 8,152, against the index's Monday close of 8,157.80.
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.
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.
Frederic J. Brown | Afp | Getty Images
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
English (US)