Market Volatility: Trump’s Tariff Comments Send Mixed Signals
Asian Stocks React to Trump’s Latest Tariff Threats
Asian markets were left reeling on Wednesday as U.S. President Donald Trump’s latest comments on tariffs sparked uncertainty. While U.S. futures edged higher, oil prices declined, and investors in Asia were left wondering what’s next.
A Brief Reprieve, Followed by Uncertainty
On Monday, investors breathed a sigh of relief when Trump decided not to immediately impose significant tariffs on China. However, on Tuesday, Trump announced that he was considering a 10% punitive duty on Chinese imports, citing concerns about fentanyl being smuggled from China to the U.S. via Mexico and Canada.
Markets React
Hong Kong’s Hang Seng dropped 1.7% to 19,755.11, while the Shanghai Composite lost 0.9% to 3,213.62. In contrast, Tokyo’s Nikkei 225 index surged 1.6% to 39,646.25 after Trump announced a joint venture to invest up to $500 billion in infrastructure related to artificial intelligence. Softbank Group Corp.’s Japan-listed shares soared 10.6% on Wednesday.
Taiwan and South Korea See Gains
Taiwan’s Taiex gained 1% after Trump’s AI investment push, with Taiwan Semiconductor Manufacturing Corp. increasing by 1.3%. South Korea’s Kospi added 1.2% to 2,547.06, while Australia’s S&P/ASX 200 rose 0.3% to 8,429.80.
U.S. Markets and Oil Prices
U.S. futures were higher, while oil prices dropped. On Tuesday, the S&P 500 climbed 0.9% to 6,049.24, and the Dow Jones Industrial Average rose 1.2% to 44,025.81. The Nasdaq composite added 0.6% to 19,756.78.
Bond Market and Currency Fluctuations
In the bond market, U.S. Treasury yields eased, giving back some of their recent gains. The yield on the 10-year Treasury fell to 4.56% from 4.62% late Friday. In the foreign-currency market, the values of both the Mexican peso and Canadian dollar fell against the U.S. dollar after Trump’s tariff threats.
Cryptocurrency Market
In the cryptocurrency market, bitcoin pulled back from its record above $109,000 set on Monday and was trading at $105,742 on Wednesday, according to CoinDesk.
Oil Prices and Currency Exchange
Benchmark U.S. crude lost 39 cents to $75.44 a barrel on mid-Wednesday. Brent crude, the international standard, gave up 26 cents at $79.03 a barrel. The U.S. dollar rose to 155.83 Japanese yen from 155.46 yen, while the euro cost $1.0410, down from $1.0433.
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