Copper Hits Records – Asia Market Wrap

Asian stocks traded in a tight range Wednesday as investors searched for a clear direction amid weaker US consumer confidence and uncertainty about President Donald Trump’s upcoming tariffs.

The MSCI Asia Pacific Index snapped a three-day decline, eking out a 0.3% gain after it lost early momentum. US copper surged to a record high as traders price in the possibility of hefty import tariffs. US and European equity-index futures were steady while the 10-year US Treasury yield edged up. The dollar was little changed after ending a four-day rally Tuesday.

The Trump administration indicated earlier this month that the coming wave of US tariffs may be less expansive and more targeted than originally feared. On Tuesday, Trump said he didn’t want have too many exceptions but he will “probably be more lenient than reciprocal, because if I was reciprocal, that would be that would be very tough for people.”

US tariffs on copper imports could be coming within several weeks, months earlier than the deadline for a decision, according to people familiar with the matter.

The Hang Seng Tech Index of big Chinese stocks in the sector rallied as much as 1.6% on Wednesday, after falling to the brink of a correction the day before. Morgan Stanley strategists raised their 2025 year-end index targets for Chinese stocks. Similarly, strategists at Goldman Sachs expect more fundamental upside to the recent rally as more positive earnings revisions should be coming.