Wall Street Rises, Asia Also Optimistic
Asian stocks opened higher on Tuesday morning after Wall Street set a new record, led by the S&P 500 index, which surpassed 6,300 for the first time. Optimism ahead of a busy earnings season, including from tech giants like Tesla and Alphabet, was the main driver of the market rally. The MSCI Asia Pacific regional stock index rose 0.3%, reflecting positive sentiment in global markets.
In Japan, the stock index rose about 1% after markets reopened following a national holiday. Prime Minister Shigeru Ishiba's statement that he would remain in office even if the governing coalition lost its majority in the upper house provided some political stability. Analysts noted that concerns about extreme fiscal spending have eased after the election, potentially supporting the stock market going forward. However, political uncertainty following the election results remains a factor limiting further rally.
Meanwhile, global markets are also monitoring the direction of US tariff policy ahead of the August 1 deadline. US President Donald Trump is expected to issue more unilateral tariffs in the coming days, according to White House Press Secretary Karoline Leavitt. Philippine President Ferdinand Marcos Jr. is scheduled to meet with Trump in Washington to push for a new trade deal, highlighting the importance of diplomacy ahead of the tariff deadline.
The second-quarter earnings season in the US has kicked off with strong results, particularly from the consumer sector. While market valuations like the S&P 500 are already quite high—trading at 22 times estimated 12-month forward earnings—many analysts, such as those at UBS, remain optimistic about a medium-term bull market. However, observers warn that low volatility and calm in the market could turn into risky complacency. Investors are currently advised to remain cautious, but use market corrections as entry opportunities. (ayu)
Source: Newsmaker.id
