Global Market Movements Amid Japan's Mountain Day Holiday

The start of the week in Asia has been quiet, attributed to Japan's Mountain Day holiday. Despite the Nikkei's steep fall last week, other Asian markets show gains. The USDJPY is stabilizing, and the Federal Reserve hints at a careful approach to rate cuts, awaiting U.S. inflation data. Geopolitical tensions in the Middle East continue to loom.

It's been a calm start to the week in Asia as Japan observes Mountain Day after the Nikkei's significant drop last week, unsettling global markets.

If Tokyo markets were open, futures indicate the Nikkei would see a rise, yet still not recover from last Monday’s record plunge. Asian markets overall are performing better, with Taiwan seeing a notable 2% increase, although Wall Street futures remain stable.

The dollar is wavering around 147.00 yen, signaling a potential end to the yen carry trade unwinding. Upcoming U.S. consumer price data and key retail sales figures may provide further insight into economic trends, while geopolitical tensions rise with the U.S. deploying military forces to the Middle East amid rising Iranian threats toward Israel.