Asian stocks cautious after Trump visa squeeze: Oil, gold edge higher; dollar held steady

Asian markets opened cautiously higher on Monday, while the dollar held steady as investors assessed the US monetary policy outlook after last week’s Federal Reserve rate cut. Adding to the unease, President Donald Trump’s crackdown on worker visas kept sentiment in check, particularly for India’s tech sector.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.09%, while Tokyo’s Nikkei gained 1% after Friday’s drop. US stock futures, however, slipped, with S&P futures down 0.1%, Reuters reported.The focus remains on Indian IT stocks after Washington announced that companies would need to pay $100,000 annually for new H-1B visas, a major setback for the $283 billion Indian IT industry, which earns more than half of its revenue from the US.The visa move comes on the heels of Trump doubling tariffs on Indian imports to as much as 50%, citing New Delhi’s Russian oil purchases.According to Reuters, on the macroeconomic front, traders are closely watching the Fed’s rate path after last week’s cut, with more policymakers set to speak this week. Friday’s core PCE inflation data, the Fed’s preferred gauge, will also be key, with expectations of a 0.2% monthly rise keeping the annual rate at 2.9%. Markets are pricing in around 44 basis points of easing by year-end.The dollar index stood at 97.716, holding its ground. Analysts noted that US Treasury supply and a heavy Fed speaker calendar could drive currency moves in the near term.The Japanese yen weakened slightly to 148.20 per dollar after the Bank of Japan held rates at 0.5%. Two board members pushed unsuccessfully for a hike to 0.75%, signaling a hawkish tilt. In commodities, Brent crude inched up 0.3% to $66.89 a barrel, while US WTI rose 0.35% to $62.90. Gold gained 0.24% to $3,692.79 per ounce, just shy of last week’s record high.