Asian stock markets : here
Nikkei climbs as Takaichi nearer to PM job
China economy set to slow, adding to case for more stimulus
Wall St futures edge up on hopes for solid earnings
Bonds underpinned by expectations of multiple Fed cuts
By Wayne Cole
SYDNEY, Oct 20 (Reuters) - Asian share markets pushed higher on Monday amid optimism on earnings as reporting season gets into full swing, while a reading on U.S. inflation is expected to be no more than a speed bump on the way to further rate cuts.
Data on the Chinese economy are forecast to show growth slowed to 4.8% in the third quarter, while retail sales and industrial output should underline the need for stimulus as policymakers convene to discuss the latest Five-Year Plan.
Figures out in the United States on Friday, and despite the government shutdown, are expected to show core inflation held at 3.1% in September, but should not trouble markets given the Federal Reserve has not pushed back against pricing for cuts.
“Chair Powell has highlighted the importance of signs of a weakening job market in the Fed’s policy considerations,” said Michael Feroli, head of U.S. economics at JPMorgan. “That confirmed widely held expectations that the FOMC will cut rates again at its next meeting in just over two weeks.”
Futures are fully priced for a quarter-point easing this month, and another in December, with rates seen reaching 3.0% by the middle of next year. (0#USDIRPR)
Japan’s Nikkei (.N225) led Asia higher with a rise of 1.5%
encouraged by news the Liberal Democratic Party and the Japan Innovation Party have agreed to form a coalition government, setting the stage for the country’s first female prime minister.
Analysts assume Sanae Takaichi would be pro-stimulus and against further hikes in interest rates, a negative for the yen and bonds but a plus for equities.
Shares in South Korea (.KS11) added 0.6%, while MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) firmed 0.1%.
For Wall Street, S&amp;P 500 futures (ESc1) were steady, while Nasdaq futures (NQc1) edged up 0.1% on expectations for upbeat earnings this week.
<h3>HIGH EXPECTATIONS FOR EARNINGS</h3>
Reports include Tesla (TSLA.O) , Ford (F.N) , GM (GM.N) , Netflix (NFLX.O) , Procter &amp; Gamble (PG.N) and Coca-Cola (KO.N) , along with aerospace and defence giant RTX (RTX.N) and tech stalwarts IBM (IBM.N) and Intel (INTC.O) .
The UK also has major banks reporting this week while software giant SAP (SAPA.UL) will make a splash in Germany.
EUROSTOXX 50 futures (STXEc1) edged up 0.4%, while DAX futures (FDXc1) firmed 0.5% and FTSE futures (FFIc1) 0.1%.
S&amp;P 500 companies overall are expected to have increased earnings by 8.8% in the third quarter from a year earlier, according to LSEG IBES, and strong results will be needed to justify the market’s lofty valuations.
The prospect of a series of Fed rate cuts has underpinned bonds, with 10-year yields (US10YT=RR) falling almost 14 basis points last week to currently stand at 4.011%.
The slide in yields has pressured the dollar against European and higher-yielding currencies, with the euro at $1.1656 (EUR=EBS) having edged up 0.3% last week despite a surprise credit downgrade of France.
The yen had its own problems as investors have scaled back pricing for a Bank of Japan rate hike this month to just 22%, with a move in December put at 50-50. (0#JPYIRPR)
The dollar was up 0.2% at 150.92 yen (JPY=EBS) , while the euro made similar gains to 175.89 (EURJPY=) . The dollar index was flat at 98.543 (=USD) .
In commodity markets, gold remained in high demand after jumping almost 6% last week to as far as $4,378.69. The metal was trading at $4,245 an ounce (XAU=) , with $4,200 now acting as chart support. (GOL/)
“On a three-year horizon, we believe that there is more room for gold prices to rise, eventually reaching a target of $5,000 an ounce in 2028 due to a structural change in demand for the metal by investors and central banks,” said Lorenzo Portelli, head of cross-asset strategy at Amundi Investment Institute.
Oil prices continued to be weighed by ample supplies as OPEC+ keeps raising its output. (O/R)
Brent (LCOc1) was flat at $61.28 a barrel, while U.S. crude (CLc1) held at $57.57 per barrel.
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NFLX

Asian stock markets rose, led by Japan's Nikkei, amid earnings optimism. The U.S. inflation report is expected to be a minor concern, with the Federal Reserve likely to cut rates soon. Japan's coalition government formation is seen as pro-stimulus, boosting equities. Major companies like Tesla and Netflix are set to report earnings, with S&P 500 expected to see an 8.8% increase in Q3 earnings. Gold prices surged, while oil remains pressured by high supply.

- Asian stock markets rose, driven by optimism over earnings as the reporting season begins, with Japan's Nikkei leading the gains at 1.5%.  
- China's economy is projected to slow to 4.8% growth in Q3, prompting discussions for stimulus measures, while U.S. inflation data is expected to support further Federal Reserve rate cuts.  
- Wall Street anticipates strong earnings from major companies, with S&P 500 earnings expected to rise by 8.8% year-over-year, which is crucial for justifying current market valuations.

GLOBAL MARKETS-Asia shares led higher by Japan rally, earnings optimism