Trump Tariffs Cause Asian Stocks to Fall While the Dollar Rises – Asia Market Wrap
The Dollar rose after Trump promised to put tariffs on all steel and aluminium imports, as investors braced for increasing global trade hostilities. Hong Kong stocks extended their technology-fueled surge for a third day.
Equities were uneven, with a benchmark of Asian equities falling the most in a week, while US and European stock index futures nudged up. The Dollar index rose 0.2% amid speculation that escalating tariffs may boost inflation and limit the Fed’s capacity to decrease interest rates.
Trump’s plan to impose a 25% tariff on steel and aluminium on Monday heightened already tense sentiments ahead of Powell’s semi-annual congressional hearing and the US President’s likely announcement of retaliatory tariffs on ‘everyone’ this week. Trump stated that the metals tariffs would apply to imports from all countries, although he did not specify when they would go into force.
The slight advances in US stock futures during Asian hours suggest that some buyers may wish to return to the market following the 1% selloff on the S&P 500 Index on Friday. This week’s important events include Powell’s speech and US CPI statistics.
