Asian stocks were mixed on Monday as markets braced for a crucial Federal Reserve policy meeting later this week and awaited key tech earnings, while Japan shares slumped amid a sharply stronger yen.
U.S. stock indexes closed last week on a weaker footing, while futures tied to them fell during Asian hours on Monday.
Nikkei slumps amid yen spike Nikkei 225 index slumped nearly 2%, extending recent weakness in exporters as the yen strengthened sharply against the U.S. dollar amid speculation of currency market intervention by Japanese and U.S. officials to support the beleaguered currency.
A stronger yen typically hurts Japanese exporters’ overseas earnings, adding to risk-off trading in Tokyo. Gold surged to record highs as safe-haven demand intensified, highlighting investor caution ahead of key global policy events.
Elsewhere in the region, South Korea’s KOSPI also eased nearly 1% after record peaks of 5,023.76 points earlier in the day, while China’s Shanghai Composite held largely steady.
Australia’s S&P/ASX 200 index edged 0.1% higher, while Singapore’s Straits Times Index fell 0.4%.
Indian stock markets were closed for a public holiday.
Fed meeting, heavy tech earnings calendar in focus Traders are focused squarely on this week’s Fed meeting, where policymakers are widely expected to hold interest rates steady, with markets watching closely for any shift in forward guidance on future rate moves amid ongoing inflation pressures.
Comments from Fed Chair Jerome Powell and others later in the week are expected to shape sentiment across global risk assets.
Investor attention is also concentrated on a busy earnings slate, including quarterly results from most of the so-called “Magnificent Seven” tech giants -- Microsoft Corporation (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), Tesla Inc (NASDAQ:TSLA), Apple Inc (NASDAQ:AAPL) -- whose performance often sets the tone for broader markets.
In Asia, Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) are among the major technology names scheduled to report.
Investor caution around AI-linked stocks persists, with technology shares underperforming in some sessions as concerns grow about stretched valuations and rising costs.
Market participants remain cautious ahead of both policy and earnings catalysts, balancing optimism about artificial-intelligence-driven long-term growth with near-term macroeconomic and currency risks.
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