Asian stock markets edged up again Monday following another record close on Wall Street but the gains were tempered by profit-taking following last week’s global rally. Expectations that central banks around the world will introduce fresh stimulus for their economies lit a fire under equities and high-risk assets last week, while confidence was given a further boost by another round of upbeat US data. Equity markets have remained resilient, despite the geopolitical risk arising out of the failed military coup attempt in Turkey. Ankara said it was in control of the country and economy and widened a crackdown on suspected supporters of the failed military coup, taking the number of people rounded up from the armed forces and judiciary to 6,000. The initial reaction of investors late on Friday had been to bid up safe havens, however they have quickly unwinding throughout today’s session. The ASX is up +0.49%, New Zealand +0.34% while Shanghai and the Hang Seng slip -0.1%. Tokyo was closed for a public holiday.

IN FX space early moves in illiquid conditions saw USD/JPY jump to 106 before dropping back to trade 105.50/75 for much of the session. Sterling also benefitted, trading as high as 1.3270 against the US Dollar before settling just below the 1.3250 handle. The Euro and Aussie dollar were also higher on the improved sentiment.  Kiwi fell yet again as Q2 CPI came in under expectations (0.4% v 0.5% expected) fuelling further speculation of an RBNZ rate cut at the next monetary policy meeting. Gold chopped around a $10 range and oil traded slightly higher with WTI at $46.01 and Brent at $47.84 a barrel.

So to the day ahead and it’s a slow day for economic news, this morning we have BOE MPC member Weale speaking (0915 BST) about the implications of Brexit for monetary policy at the Resolution Foundation, in London.

US Housing Market Index (1500 BST) Sentiment in the home-building industry is pointing to stable and perhaps modestly stronger growth for residential housing construction for this year’s second half. In last month’s update, the National Association of Home Builders’ Housing Market Index ticked up to 60, a five-month high. The gain marked the first rise after HMI remained unchanged at 58 for four straight months. Economists are expecting HMI to tick up again to 61 for July, which would mark the highest reading since January and if the prediction holds, the news will cast a positive light on tomorrow’s monthly report on new housing starts.