Asian stocks broadly rose on gains in US equities and expectations of strong earnings. MSCI Asia-Pacific stocks excluding Japan led the gains, while South Korean and Japanese stocks also attracted buying.
Asian stocks approached their highs in Singapore trading, supported by the strength of US equities the previous day, while the MSCI Asia-Pacific Index excluding Japan rose 1.1%. South Korean stocks rose 3.3%, while Japan's Nikkei 225 gained 0.9%.
S&P 500 futures edged up 0.2%, but caution toward AI-related data-centre companies kept risk appetite in check. After last week's decline, markets avoided sharp moves and trading remained range-bound.
Third-party data showed that the proportion of S&P 500 companies exceeding revenue forecasts was rising, supporting the overall market outlook amid a mixed earnings season. Some observers also said that certain companies had begun pricing in supply-demand risks related to AI.
By stock, sentiment toward AI-related names deteriorated after Australia's NextDC sharply cut its revenue forecast for the next fiscal year, nearly halving its market capitalisation. Among EW stocks, Elise Group staged a sharp rebound after its debut.
Regionally, Jio Platforms' $3.2 billion IPO in India was fully subscribed in just under two hours after subscriptions opened, indicating continued inflows into the Indian market. Crude oil rose amid heightened tensions in the Middle East, with Brent holding in the $110s.