Asia Markets Edge Lower on U.S. Tariffs, Fed Watch

Asia-Pacific markets trade mixed as investors reacted to U.S. tariffs and waited for Fed Chair Powell’s testimony. Stocks, commodities, and bond yields show varied trends.

Global Markets Overview Asia-Pacific markets traded mixed on Tuesday as investors assessed the impact of U.S. President Donald Trump’s new tariff measures and awaited testimony from Federal Reserve Chair Jerome Powell. Concerns over trade tensions and monetary policy decisions contributed to regional market volatility.

Asian Stock Market Performance

• Japan’s Nikkei 225 declined by 0.13% amid subdued investor sentiment.
• Shanghai Composite climbed 0.61%, driven by gains in technology and consumer stocks.
• Hong Kong’s Hang Seng Index surged 1.86%, marking one of the strongest performances in the region.
• Australia’s S&P/ASX 200 fell 0.34%, reflecting concerns over potential trade disruptions.

Commodities and Bond Yields Commodities remained relatively strong as investors sought safe-haven assets:

• Gold rose to $2,915.35 per ounce, up 0.93%.
• Silver gained 0.38%, reaching $32.75 per ounce.
• Brent crude oil climbed 0.69% to $75.19 per barrel.
• WTI crude oil advanced 0.73%, reaching $71.54 per barrel.

In bond markets, the U.S. 10-year Treasury yield stood at 4.487%, the UK 10-year yield was 4.476%, and Germany’s 10-year yield was 2.377%.

Asia Markets Edge Lower on U.S. Tariffs, Fed Watch

Market Reactions to U.S. Tariffs On Monday, President Trump signed an order imposing a 25% tariff on steel and aluminum imports, raising concerns about escalating trade tensions. The move caused investor sentiment to decline, particularly in Asia, where many economies play a crucial role in global supply chains.

Regional Market Developments

• South Korea’s Kospi gained 0.72%, while the small-cap Kosdaq added 0.35%.
• Singapore’s Straits Times Index declined 0.44% after reaching a record intraday high of 3,910.12 on Monday.
• India’s Nifty 50 slipped 0.32%, while the BSE Sensex hovered near the flatline.
• Japan’s markets were closed due to a public holiday.

Wall Street Performance U.S. markets saw gains as major indices closed higher, led by a surge in technology stocks:

• Dow Jones Industrial Average rose 167.01 points (0.38%) to 44,470.41, boosted by a 4.8% increase in McDonald’s shares.
• S&P 500 climbed 0.67% to 6,066.44.
• Nasdaq Composite jumped 0.98% to 19,714.27.

Investors are now focusing on Federal Reserve Chair Jerome Powell as he prepares to testify before Congress later today. Investors will closely monitor his remarks for insights into future monetary policy, inflation expectations, and economic growth forecasts, which could significantly impact global financial markets.

Upcoming Economic Events

• 03:00 PM GMT – USD Fed Chair Powell Testifies
• European Sentix Investor Confidence Report showed a decline from -12.7 to -16.4, missing expectations and reflecting growing investor caution.

As markets digest these developments, volatility may persist as investors react to evolving trade policies and central bank signals.

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