Asian equities witnessed a notable gain, following the upward trajectory of Wall Street stocks. This came after a selloff in Treasuries that had pushed 10-year yields to a significant high of 4.5%. Traders are now intently observing any developments related to President-elect Donald Trump's planned administration.

Market Overview and Key Players

In Japan, South Korea, and Australia, benchmark indexes advanced, while futures showed an upward trend in Hong Kong. The Nasdaq 100 outperformed on Monday, ending its longest rout since January. Tesla Inc. surged by 5.6% as news emerged that Trump's transition team had informed advisers of their intention to make a federal framework for fully self-driving vehicles a priority within the Transportation Department. However, Nvidia Corp., which is set to report its results this week, experienced a decline.Treasuries rebounded across the US curve on Monday, reversing earlier losses. In early trading on Tuesday, Australia's 10-year notes also showed an upward movement.Chris Larkin from E*Trade at Morgan Stanley stated, "Traders seem to be assessing the potential impact of a new Trump administration's policies on the economy and the likelihood that the Fed may slow down its rate-cutting campaign. With a relatively light economic calendar this week, the focus will shift to earnings, particularly Nvidia's, which have the potential to influence the market's short-term momentum."The S&P 500 rose by 0.4% on Monday, and the Nasdaq 100 climbed 0.7%. Treasury 10-year yields decreased by three basis points to 4.41%. The Bloomberg Dollar Spot Index slid 0.4%, and Bitcoin reached a peak of $91,000.In Asia, investors are carefully evaluating whether the rebound in equities in China and Hong Kong following last week's selloff can be sustained. Traders are reevaluating the prospects for further stimulus and the country's guidance on enhancing corporate valuation.Wall Street brokerages like Morgan Stanley and Goldman Sachs Group Inc. have become more cautious about Chinese stocks due to persistent deflationary pressures and geopolitical tensions, which are clouding the outlook for earnings in the world's second-largest equity market.Oil prices edged lower after a significant surge on Monday amid simmering geopolitical tensions. West Texas Intermediate rose by 3.2% to settle above $69 a barrel after the US gave Ukraine the green light to use long-range missiles inside Russia, intensifying tensions between the warring nations.Gold prices rose by the most since August as Goldman Sachs Group Inc. reiterated its forecast for prices to reach $3,000 an ounce next year.In Washington, Trump's transition team is considering pairing Kevin Warsh, a former Federal Reserve official, as the Treasury secretary and hedge fund manager Scott Bessent as the director of the White House's National Economic Council, according to people familiar with the matter.Top Justice Department antitrust officials have decided to request a judge to force Alphabet Inc.'s Google to sell off its Chrome browser, which would be a significant crackdown on one of the world's largest tech companies. The department will ask the judge to implement measures related to artificial intelligence and its Android smartphone operating system.This week, several key events are scheduled:- Eurozone CPI on Tuesday- US housing starts on Tuesday- Fed's Jeff Schmid speaking on Tuesday- China loan prime rates on Wednesday- Nvidia earnings on Wednesday- Fed's Lisa Cook and Michelle Bowman speaking on Wednesday- Eurozone consumer confidence on Thursday- US existing home sales, initial jobless claims, and Philadelphia Fed factory index on Thursday- Eurozone HCOB Manufacturing & Services PMI on Friday- US University of Michigan consumer sentiment and S&P Global Manufacturing & Services PMI on FridaySome of the main moves in markets are as follows:Stocks- S&P 500 futures were relatively unchanged as of 9:09 a.m. Tokyo time.- Hang Seng futures rose by 0.8%.- Japan's Topix rose by 0.7%.- Australia's S&P/ASX 200 rose by 0.6%.- Euro Stoxx 50 futures fell by 0.1%.Currencies- The Bloomberg Dollar Spot Index remained relatively unchanged.- The euro was little changed at $1.0592.- The Japanese yen rose by 0.1% to 154.43 per dollar.- The offshore yuan was little changed at 7.2300 per dollar.Cryptocurrencies- Bitcoin fell by 0.8% to $90,609.45.- Ether rose by 1.8% to $3,205.78.Bonds- The yield on 10-year Treasuries remained unchanged at 4.41%.- Japan's 10-year yield was unchanged at 1.070%.- Australia's 10-year yield declined by four basis points to 4.56%.This story was produced with the assistance of Bloomberg Automation.©2024 Bloomberg L.P.