As Yen Reduces Gain, China leads Asian stocks Higher – Asia Market Wrap
Asian equities reached their highest level in seven weeks as Wall Street stocks and bonds surged in a week clouded by tariffs, disappointing tech profits, and mixed US economic data. Chinese shares rose as the Yen strengthened.
A barometer of Asian shares increased for the third day in a row, while US market futures nudged higher after the S&P 500 and Nasdaq 100 advanced on Wednesday. Indian benchmarks fell, while equities in Hong Kong and mainland China rose, reversing Wednesday’s dip. Treasuries slipped lower following a big surge overnight.
Thursday’s calm contrasts with the market’s volatility since Monday, when Trump opted to impose and then defer tariffs on Canada and Mexico. The US imposed a 10% duty on all Chinese imports, prompting China to counter with some duties on the US. The erratic policy actions in the US have dampened investment appetite, with traders weighing tariff risks against the potential of improved monetary conditions.
The Yen lost most of its gains against the Dollar. Tamura, the BoJ’s most hawkish board member, told reporters that 1% is not the definitive neutral rate for the economy, pointing out that the upside risk to prices is gradually increasing. In addition, hedge funds are increasing their demand for the Yen as currency markets become more unpredictable.
