Asia Colour - 5 May 25
1/ Friday’s U.S. macro data beat expectations: Nonfarm payrolls rose 177k vs. 133k expected, and unemployment held at 4.2%. Still, economists caution that the full impact of recent tariffs has yet to play out.
2/ Markets responded with cautious optimism. The S&P 500 extended its rally to 10 straight sessions, reversing the post–Liberation Day slump. Resilient data and hopes of easing trade tensions supported the bounce — but risks are far from priced out.
3/ With earnings season nearly over, attention shifts back to the big macro drivers: U.S.–China trade talks and Fed policy. Equity futures slipped after Trump confirmed no immediate plans to speak with China, though hinted at upcoming deals with other partners.
4/ The Fed is expected to keep rates unchanged this week. While inflation pressures are easing per PCE data, new tariffs could reintroduce volatility. The key question: Will the Fed stay the course, or respond to mounting political pressure for cuts?
5/ In digital assets, Strategy doubled its capital-raising target to $84B — even after a record Q1 loss due to new accounting rules. The move underscores conviction in Bitcoin’s long-term role, as steady spot ETF inflows confirm growing institutional adoption.
Read more: www.qcpgroup.com/insights/asia...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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