Asia open: How long can the bullish waves last?

Investors in Asia are bracing for the new quarter on Tuesday while catching their breath from the whirlwind that closed out Q3. Chinese stocks skyrocketed to their best day since 2008, while equities took a nosedive in Japan. Traders are keeping a close eye on Shigeru Ishiba, Japan’s newly minted prime minister, who’s seen as a bit of a monetary policy hawk.

And to stir the pot a bit more, Fed Chair Jerome Powell took the mic on Monday and did what he does best—dousing the market’s feverish hopes for aggressive rate cuts with a cold splash of reality. His message? Don’t get too cozy betting on back-to-back jumbo cuts.

Now, Powell wasn’t throwing a hawkish grenade into the room, but he was gently reminding everyone that maybe, just maybe, the markets were getting a little too ahead of themselves with all the rate cut hype. Mind you, Wall Street barely flinched, wrapping up Monday with a solid finish, capping off a quarter where the S&P 500 seemed to smash through record highs like they were going out of style. With hardly a bear in sight, the bulls were practically in a footrace, each trying to push the market to see how high it could soar.

And now, with China jumping into the mix, it’s a classic case of "How long can we ride these bullish waves?" Everyone’s trying to figure out how much paddle power is left in the tank before the tides turn. Inevitably, they always do.

As China trading screens go dark for its Golden Week holiday, all eyes shift across the Pacific to the U.S. jobs report—the next heavyweight contender in the market ring.

Let’s get honest about China’s latest "shock and awe" stimulus package—it didn’t quite spark that global hyper-bullish frenzy we used to see. In today’s fragmented, tariff-loaded global economy, Beijing’s economic magic doesn’t pack the same punch it once did.

Despite the flood of bullish headlines coming out of China, the ripple barely reached U.S. shores. That says much about China’s fading role as an economic engine for the U.S. and the increasing doubt that Beijing’s policymakers can right the ship. Throw in the growing possibility of a second Trump term—cue Tariff Wars 2.0—and U.S. traders are playing it safe, sitting on their hands. They know any gains could vanish quicker than you can say “trade deal.”

With the U.S. election looming, tensions are hitting a fever pitch. Beijing’s bracing for the potential return of Trump 2.0, which could unleash another wave of tariff hikes on Chinese exports. So, you can bet they're scrambling to fortify their defences—because the road ahead? It's shaping up to be bumpier than a Beijing back alley.