Asia markets rise as investors digest Wall Street’s strong earnings

Chetan Ahya, chief Asia economist at Morgan Stanley, discusses the three areas of policy support it expects will come from the Chinese government.

Confidence among large Japanese manufacturers fell in July, according to the Reuters Tankan survey, which measures business sentiment among large Japanese companies

This is the first time that the index has recorded a decline in six months, with the manufacturing index falling from +8 in June to +3.

The non-manufacturers index recorded a second straight month of decline, falling one point to +23.

A positive figure means that optimistic respondents outnumber pessimists, and vice versa.

— Lim Hui Jie

Albert Park, chief economist of the bank, says the caution of Chinese consumers and businesses is the “dampener” behind China’s sluggish economic recovery.

U.S. stocks have made big gains this year, but the performance across global stocks has been uneven so far.

So where will global stocks go in the second half of the year?

CNBC Pro asked 15 market strategists at investment banks and asset managers that question from July 3-7. The respondents also shared their views on how investors should be positioned and what the biggest market risks are.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The rise in interest rates in the U.S. to above 5% means investors around the world are looking further afield for high-yielding investments.

For global investors, one frontier markets bond fund is offering substantial returns; its yield was around 10% as of July 18, according to FactSet data, although these returns are tied to higher levels of risk.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Forty-three stocks in the S&P 500 leapt to new 52-week highs on Tuesday.

Microsoft jumped to all-time highs dating back to its March 1986 initial public offering. At their highest level on Tuesday, shares hit $366.78. Shares of the Big Tech name popped after Microsoft announced a new artificial intelligence subscription service for Microsoft 365, costing an additional $30 a month.

Chipotle Mexican Grill shares rose to a high of $2,173.63 Tuesday. The stock is trading at all time high levels dating back to the burrito chain’s debut in January 2006. Chipotle signed its first-ever franchise partner to expand in the Middle East.

On Semiconductor, Darden and Omnicom are also trading at all-time highs.

–Darla Mercado, Chris Hayes

Bank of America earnings and revenue exceeded estimates, as the company got a boost from higher interest rates and interest income.

“All businesses performed well, and we saw improved market shares, particularly in our Sales and Trading and Investment Banking businesses,” CEO Brian Moynihan said in a statement. “A strong balance sheet and ample liquidity allowed us to continue investments in our franchise to drive long-term value for stakeholders.”

Bank of America shares rose 0.8% in the premarket

— Fred Imbert

Consumer spending was weaker than expected in June despite a seemingly brighter inflation picture, the Commerce Department reported Tuesday.

Advance retail sales showed just a 0.2% increase for the month over May, less than the 0.5% increase that economists surveyed by Dow Jones had been expecting. Excluding autos, the increase also was 0.2%, below the 0.3% estimate.

Falling prices saw gasoline station sales drop 1.4%, offsetting a 2% gain from miscellaneous stores and a 1.9% increase on online purchases.

The numbers are not adjusted for inflation; the consumer price index rose 0.2% for the month, indicating that real sales were about flat.