SYDNEY - Asian stocks made a cautious start on Monday in a week that is almost certain to see the start of an easing cycle in the United States with the only question mark being the size of the cut, with markets split on the chance of an outsized move.
Japan's Nikkei was shut but futures traded at 36,490 compared to a cash close of 36,581 as recent yen gains pressured exporters. S&P 500 futures and Nasdaq futures were both a fraction firmer. Futures imply a 52% chance the Federal Reserve would cut rates by 50 basis points on Wednesday with the odds narrowing sharply after media reports revived the prospect of a more aggressive easing.
Just the chance of an aggressive move saw bonds rally broadly, with two-year Treasury yields down at 3.593% having scored the lowest close since September 2022. The drop in Treasury yields has boosted the yen against the dollar, which stood at 140.82 yen having slipped 0.9% last week to a near nine-month trough.
Oil prices edged up as nearly a fifth of crude oil production in the Gulf of Mexico remained offline. Inter Milan drew 1-1 away to Monza in their first match back from the international break.The Serie A clash at the U-Power was hardly a thriller. Inter struggled to get out of second gear and create d...