Futures in Japan pointed to gains, while Australian shares are poised to open flat and Hong Kong may dip. In the US, tech stocks led the way forward with the Nasdaq 100 rising 1.2%. Tesla Inc. rallied 10% as Morgan Stanley said its Dojo supercomputer may boost value by up to $500 billion. Qualcomm Inc. climbed after Apple Inc. extended a deal with the chipmaker.
Meanwhile, after Bank of Japan Governor Kazuo Ueda aired the possibility of ending the developed world’s last key negative interest rate, the yen advanced the most in two months against the dollar. The nation is due to release key producer price index data on Wednesday. The market is in a late-cycle backdrop — a time when the Fed is expected to pause or reverse its hawkish policy stance — and more conservative equity factors, like high cash and low debt, have started to outperform, according to Morgan Stanley strategist Michael Wilson. He reiterated his view that stock markets are not yet reflecting the risk of a recession.