Asian Shares Rise as Investors Await Earnings Reports and Fed Meeting

Asian shares mostly rose on Tuesday as investors awaited key reports later in the week. Japan’s Nikkei 225 surged 1.3%, Sydney’s S&P/ASX 200 rose 0.3%, and South Korea’s Kospi added 0.6%. In the U.S., the S&P 500, Dow Jones, and Nasdaq also saw gains.

This week, heavyweights like Amazon and Apple are set to report their first-quarter earnings, with results so far exceeding expectations. The stock market is looking for a third consecutive quarter of earnings growth.

After a turbulent April, where the S&P 500 fell due to concerns about high inflation, traders are now expecting fewer interest rate cuts from the Federal Reserve. The Fed’s policy decision on Wednesday is not expected to change rates but may provide clues on future cuts.

Fed Chair Jerome Powell’s news conference following the decision could shed light on the central bank’s stance on inflation and interest rates. Friday’s jobs report is also anticipated to impact policy makers’ outlook.

In the bond market, the 10-year Treasury yield eased, while in energy trading, benchmark U.S. crude and Brent crude prices fell. The U.S. dollar strengthened against the Japanese yen and the euro.

Investors are closely watching these developments as they navigate market volatility and economic indicators to make informed decisions.