Key facts
- Asian shares rose and Wall Street futures ticked up as investors awaited earnings and Fed minutes.
- Oil prices eased to under $72 a barrel following OPEC+ output increases.
- Markets scaled back rate-hike expectations after a weaker-than-expected U.S. jobs report.
- Samsung Electronics is anticipated to report an 18-fold profit jump due to AI demand.
- The U.S. June jobs report showed nonfarm payrolls rose by 57,000, significantly below forecasts.
- Minutes from the Federal Reserve's June meeting are due Wednesday.
Asian share markets saw modest gains, with Wall Street futures also showing strength as investors looked ahead to a busy week of corporate earnings and key economic data. Oil prices eased following OPEC+'s decision to increase output quotas, with Brent futures trading around $72 a barrel.
Investors are digesting the implications of a softer-than-expected U.S. jobs report released last week, which prompted markets to scale back expectations for Federal Reserve rate hikes. This sentiment helped propel global stocks higher, with MSCI's broadest index of world shares climbing 2% last week.
Samsung Electronics is expected to report a substantial profit increase, driven by soaring demand for AI memory chips, though bonus payouts could impact the final figures. Rival chipmaker SK Hynix is preparing for a U.S. listing aimed at raising $28 billion.
Earnings season officially kicks off this week, with S&P 500 companies projected to deliver robust growth. Companies like Delta Air Lines and PepsiCo will provide insights into the health of the U.S. consumer.
Minutes from the Federal Reserve's June meeting, which was characterized by hawkish sentiment, are due Wednesday and could offer further guidance on policymakers' thinking.
The U.S. dollar has lost some momentum following the jobs report but showed signs of strengthening again early Monday. Gold, which typically benefits from a lower-rate environment, recouped some losses last week but eased slightly on Monday due to the stronger dollar.
The Japanese yen weakened further, approaching 40-year lows against the dollar. Meanwhile, oil prices continued to slide, influenced by fading supply concerns and the OPEC+ production boost.