Market Movements: Gold Soars, Stocks Surge Amid Economic Data Anticipation

The Asian stock markets witnessed an uptick, with the dollar trading near five-week lows and gold achieving a record high on Tuesday. This activity comes as investors brace themselves for a series of pivotal economic reports, notably the U.S. labor data scheduled for release later this week.

Markets are currently banking on the Federal Reserve lowering interest rates by 25 basis points this month, with an 89% probability. However, the upcoming data may provide insights into the possibility of a more substantial rate cut. U.S. nonfarm payrolls, alongside job openings and private payrolls stats, are eagerly anticipated to shed light on labor market conditions.

Investor sentiment remains buoyed by the prospect of decreased borrowing costs, sustaining Wall Street near historically high levels. Across Asia, Japan's Nikkei saw slight gains after a recent dip, while China's CSI300 extended its rally, driven largely by AI investment enthusiasm. Meanwhile, currencies and commodities markets also experienced shifts amid political and economic developments.

(With inputs from agencies.)