Asian markets rise on US interest rate cut hopes

Asian markets rose on Monday as investor confidence rose amid a likely U.S. rate cut in September. But the euro struggled amid political uncertainty in France, with elections suggesting a hung parliament and the left unexpectedly leading, threatening to derail President Macron’s pro-market reforms.

The unexpected success of the left in France has brought some relief to investors, although concerns about potential policy changes remain. France faces a difficult path to forming a government, which could lead to reform failures, according to Berenberg chief economist Holger Schmiedling.

The common currency was little changed, falling to $1.0828, while the euro also fell against the Swiss franc but held steady against the yen. Stocks were supported by expectations of U.S. policy easing, with MSCI’s broad Asia-Pacific index outside Japan rising 0.1% and Japan’s Nikkei holding near record levels.

U.S. stock futures were steady as major banks prepared for earnings reports. The U.S. consumer price report on Thursday and upcoming global economic data are key events for investors. Meanwhile, gold prices held steady and oil prices fell as markets monitored the impact of Hurricane Beryl on supplies in the Gulf of Mexico.

(Disclaimer: Based on information obtained from the agency.)