South Korea weighs fourth delay of crypto gains tax, eyes 2029 start: report

Asian stock markets started the week cautiously on Monday (Oct 26), as oil prices fell from six-month highs ahead of central bank meetings and company earnings reports that may further strain investor confidence in the artificial intelligence boom. Brent oil prices dropped 1% to $115.48, following reports that Qatari mediators were in Tehran to help ease regional tensions with the US.

Brent futures had surged 6.2% the previous week to their highest weekly close since mid-2022 due to Houthi attacks in Saudi Arabia, raising concerns about potential energy supply disruptions. US crude futures fell 1.1% to $102.08 per barrel. The Nikkei index in Japan declined 0.8%, having fallen 4% last week, while South Korea slipped 0.4%, after losing nearly 19% during October.

The MSCI's broader Asia-Pacific index outside Japan eased 0.1%. Inflationary concerns from oil are likely to worry central banks meeting this week, with many expected to consider rate hikes despite some holding off for now. Bruce Kasman, global head of economics at JPMorgan, noted that a modest rate hike cycle is currently in progress.

Five decades of milestones and moments that shaped Singapore's success story - told through our headlines. Five G3 central banks are likely to maintain the status quo, but Canada may initiate its tightening cycle, while the UK and Sweden could begin tightening in September. New Zealand's central bank is expected to raise rates on Wednesday, with most markets predicting an 80% chance of a Fed rate hike in December.

US core inflation is projected to remain elevated at 3.1% in September, while the economy is expected to grow at a steady 3.2% annualized pace due to increased spending on data centers. Goldman Sachs analysts said the Fed will likely skip raising rates at its October meeting but could introduce a second hike in December. The most significant risk is an oil shock that could widen inflationary pressures.

On Wall Street, S&P 500 and Nasdaq futures rose 0.2%. In Europe, Eurostoxx 50 futures gained 0.2%, while DAX futures increased 0.1%. Earnings from major companies like Alphabet, Microsoft, Amazon, Intel, and Sandisk may impact the AI trade. Microsoft is expected to report $90.6 billion in revenue and an adjusted EPS of $4.73, while Amazon is forecast to generate $202 billion in revenue and EPS around $1.97.

Alphabet's revenue and EPS are projected at $128 billion and $3.00, respectively. Higher bond yields have tested equity valuations, but Treasury yields briefly rallied before falling again. The Japanese yen maintained its safe-haven status at 157.00 per US dollar, having gained around 0.8% last week. The euro held steady at $1.1204 amid political unrest in France, which avoided a credit downgrade last week.

The British pound remained at $1.3346 as the new finance minister, John Healey, would present his first budget on Wednesday, amid rising borrowing costs and high energy prices due to the Iran conflict. Brazil's real had not traded in Asia, as President Luiz Inacio Lula da Silva secured an unprecedented fourth term on Sunday, according to the country's electoral court. In commodities, gold edged higher at $4,001 an ounce, after falling more than 4% last week.