Equities edge higher in Asia; Japan Nikkei futures near record top

Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on US inflation would likely set the course of the dollar and bonds.

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While Japan’s stock market was closed for a holiday, futures pushed up to 42,380 and suggested the cash index will test its all-time high of 42,426 this week.

Euro Stoxx 50 futures added 0.2%, while FTSE futures rose 0.1% and DAX futures firmed 0.2%.

Trade and geopolitics loom large with a US tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald J. Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine.

The main economic release will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3% and away from the US Federal Reserve target of 2%.

An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook.