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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Nikkei, Wall St futures pause near record peaks

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Hopes for bumper tech earnings underpin equity gains

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Bond bulls see rate cuts in US, Canada and a hold in Japan

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Gold hits $4,000/oz as hot money leaves the bubble

(Updates prices to Asian afternoon)

By Wayne Cole

SYDNEY, Oct 28 (Reuters) - Asian shares consolidated

recent hefty gains on Tuesday as hopes for a thawing in global

trade tensions kept risk appetites keen, while the bull run in

tech stocks counted on a bumper round of mega-cap earnings this

week.

The likelihood of lower borrowing costs in the U.S. and

Canada this week supported bonds, and weighed on the dollar as

investors waited to see just how dovish the Federal Reserve

might be on the outlook.

Meanwhile, safe-haven gold huddled around $4,000 an

ounce as a drop of 9% in five sessions squeezed leveraged money

out of what were very crowded trades.

"What began as a price rise supported by fundamentals now

looks driven by retail enthusiasm," said Neil Shearing, group

chief economist at Capital Economics.

"And with prices still at record highs in real terms, the

next big move in gold is more likely to be down than up," he

added. "Indeed, our new forecast is that the price will fall to

$3,500/oz by the end of 2026."

Several Asian share markets have also hit all-time highs and

were overdue a breather. The Nikkei eased 0.2%, having

surged 2.5% on Monday as a rally in all things tech lifted it to

gains of almost 27% so far this year.

Japan's new Prime Minister Sanae Takaichi met U.S. President

Donald Trump in Tokyo to discuss defence ties, trade and a

package of investments in the U.S. in a $550 billion deal struck

earlier this year.

South Korean stocks slipped 1.2%, giving back just

some of Monday's 2.6% jump. Sentiment was aided by data showing

the economy outpaced forecasts in the third quarter, led by

strength in consumption and exports.

MSCI's broadest index of Asia-Pacific shares outside Japan

edged down 0.2%, while Chinese blue chips

added 0.2%. The Shanghai Composite Index

cracked the 4,000 barrier for the first time since mid-2015.

EUROSTOXX 50 futures lost 0.2%, as did DAX futures

, while FTSE futures were a fraction lower. S&P

500 futures and Nasdaq futures were little changed

near all-time peaks.

Tech stocks had again led Wall Street higher overnight, with

Qualcomm ( QCOM ) jumping 11% after it unveiled two artificial

intelligence chips for data centres.

AN END TO QT?

There are lofty expectations for the "Magnificent Seven"

tech heavyweights reporting this week, with Microsoft ( MSFT ),

Alphabet, Apple ( AAPL ), Amazon ( AMZN ) and Meta

Platforms ( META ) all needing strong results to justify

stretched valuations.

Aiming to curb expenses, Amazon ( AMZN ) is planning to cut as many

as 30,000 corporate jobs starting on Tuesday, sources told

Reuters.

In bond markets, 10-year Treasury yields held at

3.98% as investors wait on Wednesday's Fed meeting. A

quarter-point rate cut is considered a done deal, with the real

focus on whether the Fed validates market pricing for a December

easing as well.

There are also hopes the Fed will end the rundown of its

balance sheet, otherwise known as quantitative tightening.

Canada's central bank is also expected to cut rates this

week, while the European Central Bank and the Bank of Japan are

seen holding steady.

The BOJ is likely to debate whether conditions are right to

resume rate hikes as worries about a tariff-induced recession

ease, but political complications may keep it on hold for now.

Wagers on a dovish Fed outlook saw the dollar slip 0.4% to

152.20 yen, having stopped short of the recent 153.29

peak overnight.

The euro nudged up to $1.1660, but remains short

of resistance at $1.1728. The dollar index eased 0.3% to 98.643

, but remained well within the recent trading range.

In commodity markets, oil prices eased on a Reuters report

that eight OPEC+ nations are leaning towards making another

modest increase in oil output for December when they meet on

Sunday, as Saudi Arabia pushes to reclaim market share.

Brent dropped 0.2% to $65.51 a barrel, while U.S.

crude eased 0.2% to $61.20 per barrel.