According to Yongfeng Commercial Bank, 73% of the companies that have reported earnings exceeded expectations, reflecting a robust performance in the US Q1 financial results. Despite ongoing disagreements over tariffs, there are no signs of deterioration in the situation. The market is now awaiting significant economic data to be released this week.

In Asia, a joint statement from Chinese authorities on stabilizing employment and the economy lacked detailed funding plans, leading to a muted market response. The A-share indices collectively fell by 0.2% to 0.65%. In contrast, Reliance Industries in India saw higher-than-expected Q1 profits, leading to inflows into large-cap stocks, pushing the Nifty50 index up by 1.2%.

The Dallas Fed's Business Activity Index for April plummeted to -35.8, raising concerns about the impact of tariffs. Dallas manufacturers expressed pessimism about future business conditions, with many respondents focusing on the topic of tariffs. They also called for the Fed to lower interest rates to stimulate the economy.

Furthermore, the ongoing impasse in US-China trade talks remains a concern, as the US Treasury Secretary indicated that de-escalation depends on China taking responsibility for easing tensions.