Asian Stocks Struggle Amid US-EU Tensions and Policy Decisions

Asian stock markets navigate a turbulent landscape as tensions between the US and European Union escalate and central banks prepare to announce key monetary policy decisions.

Market Overview

* Australian shares open lower, while Japanese markets fluctuate between gains and losses.
* Hong Kong futures signal an early decline.
* US dollar remains steady, while Treasury futures dip.

US-EU Tensions Impact

* Increased tensions between the US and Europe following President Trump's tariff plans and Vice President Vance's criticism of European allies weigh on investor sentiment.
* German and French bond futures experience a decline due to the heightened uncertainty.

China Stocks Watch

* Chinese stocks witness a surge following the announcement of a potential meeting between President Xi and Jack Ma.
* DeepSeek's breakthrough in artificial intelligence reinvigorates the rally.
* Goldman Sachs raises targets for Chinese equity benchmarks.

Central Bank Decisions

* Reserve Bank of Australia expected to commence interest rate cut cycle on Tuesday.
* New Zealand's central bank likely to continue easing measures on Wednesday.
* Analysts anticipate easing cycle to begin as inflation shows signs of moderation.

Other Notable Events

* Westpac Banking Corp. shares decline after reporting decreased profit and margins.
* Japan's economy expands for a third consecutive quarter, driven by investment and exports.
* Inflation readings in Japan, UK, and Canada to be released this week.
* China's banks anticipated to maintain loan prime rates.

Commodities and Key Events

* Oil extends its decline, falling for the fourth day.
* Key events to watch this week include:
* US FOMC minutes and housing starts
* Central bank decisions in Australia and New Zealand
* G-20 foreign ministers meeting in South Africa

Market Highlights

* S&P 500 futures show minimal change.
* Hang Seng futures decline slightly.
* Australian S&P/ASX 200 opens with a loss of 0.5%.
* Euro remains stable against the US dollar.
* Bitcoin and Ether experience modest declines.