Asian markets open on a subdued note as US stock futures edge lower

US equity-index futures edged lower and Asian markets opened on a subdued note after a lacklustre Wall Street session, as investors stayed cautious with limited economic data clouding the outlook for Federal Reserve policy.

Contracts for the S&P 500 and the Nasdaq 100 index retreated 0.2%, after the underlying gauges were largely unchanged on Wednesday. However, Bloomberg’s gauge for the Magnificent Seven fell 1.2%, extending declines for a second straight session. Treasuries steadied in early trading Thursday after yields fell across the curve.

The moves were more pronounced in the commodities market as gold and copper advanced on Fed rate-cut bets. Oil extended its drop after slumping by the most since June as a key market gauge flashed weakness and OPEC said global crude supplies surpassed demand sooner than anticipated.

Investor focus is on the yen after Japanese Finance Minister Satsuki Katayama issued a fresh warning on currency movements. The yen weakened to the key threshold of 155 per dollar on Wednesday, inching closer to levels where authorities last intervened in markets.

With the US earnings season nearing completion, markets are shifting focus to the Fed and the outlook for potential interest-rate cuts. The absence of key indicators — such as unemployment figures and October’s consumer price index — has fuelled uncertainty around monetary policy, with the White House confirming those reports are unlikely to be released due to the shutdown.

“While the markets are pricing the end of the government shutdown, there is an even bigger mountain ahead of us, and that is the resumption of all of the economic data that we have missed,” said Michael Landsberg at Landsberg Bennett Private Wealth Management. “As the fog lifts, we will see if market positioning has been correct and it is still clear sailing or if there is a big repricing necessary.”

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