Asian Markets Mixed as Fed Path and U.S. Visa Crackdown Weigh on Sentiment

Asian stocks edged higher on Monday while the dollar steadied, as investors weighed the Federal Reserve’s policy outlook following last week’s rate cut. Sentiment was capped by U.S. President Donald Trump’s move to impose a $100,000 fee on new H-1B worker visas, a blow to India’s tech sector.

India’s NIFTY and SENSEX slipped on the news, with its $283 billion IT industry—heavily reliant on U.S. business—bracing for higher costs and strained ties with Washington. Trump has also doubled tariffs on some Indian imports, partly over New Delhi’s Russian oil purchases.

Elsewhere, MSCI’s Asia-Pacific index (ex-Japan) added 0.1%, Japan’s Nikkei 225 jumped 1.3%, and Taiwan’s Taiex hit a record high. Chinese markets were volatile as traders digested cautious optimism from U.S.-China talks and potential progress on TikTok.

On the macro front, traders are pricing in 44 basis points of Fed easing across the two remaining meetings this year. Attention is on Friday’s U.S. core PCE inflation release, seen at 0.2% m/m, keeping annual inflation at 2.9%. Analysts caution that despite easing expectations, the dollar short trade has grown crowded.

The dollar index (DXY) was up 0.09% at 97.81, while the yen weakened to 148.20 per dollar after the Bank of Japan’s hawkish hold signaled scope for future rate hikes.

In commodities, Brent crude rose 0.7% to $67.16, WTI gained 0.77%