APAC Stocks Drift Lower – Asia Market Wrap
Asian stocks followed US equities lower as continual shifts in US President Donald Trump’s approach to tariffs on trade partners whipped up market uncertainty and dented confidence in the economic outlook.
Shares in Australia and Japan tumbled more than 1.5% while European equity-index futures also fell after declines on Wall Street. An index of the dollar fell for a fifth session, its longest losing streak in almost a year. Bitcoin fell as details of a US strategic reserve underwhelmed.
China emerged as a bright spot with a gauge of Chinese stocks in Hong Kong touching the highest level since November 2021.
Traders pointed to uncertainty over Trump’s tariffs. US stocks failed to stage a rebound even after a decision by Trump to delay levies on Mexican and Canadian goods covered by the North American trade deal, underscoring the fragile appetite for risk. Financial markets have whipsawed this week as investors deal with geopolitical uncertainty and conflicting signals from the US about the levies.
European stocks have advanced almost 10% this year, as rate cuts and Germany’s plan to raise defense spending boost the market. Meanwhile, a gauge of Chinese stocks listed in Hong Kong has surged almost 23% so far this year on optimism over the nation’s artificial- intelligence adoption drive and expected stimulus from Beijing.
