Five Things You Need to Know to Start Your Day: Asia

Good morning. US stock outlook remains rosy. Apple sales surprise. Biden calls Japan “xenophobic.” Huawei funds research at US universities. Here’s what’s moving markets. — Isabelle Lee

A sturdy economy will sustain the bull-market run in US stocks even without Federal Reserve interest-rate cuts, said Bank of America’s Savita Subramanian. Although optimistic that the economy will avoid a severe downturn, Subramanian said the biggest challenge will be if growth slows while inflation remains elevated. She also sees the Fed trimming interest rates as early as December, or possibly not at all this year. Stocks halted a two-day drop, with Nvidia leading gains in chipmakers. The S&P 500 topped 5,060, while the tech-heavy Nasdaq 100 climbed 1.3%. In late trading, Apple climbed after reporting that sales declined less sharply than feared last quarter, helped by stronger-than-expected demand in China. Elsewhere, Treasury 10-year yields fell five basis points to 4.58%.