Asian Stocks Decline, Dollar Weakens Due to Tariff Issues – Asia Market Wrap

The Dollar extended its losses following its worst drop in three years, while stocks and bonds fell as a widening global trade conflict weakened an already frail appetite for risk.

A barometer of Asian markets was on course for its third straight week of falls as market relief turned to concern when the White House indicated that US tariffs on China had increased to 145%. US treasuries extended the week’s decline. The Euro rose by up to 1.6%, the Yen surged, and gold reached a record high, indicating that investors are looking for safe havens and non-US options. Equity-index futures for Europe edged up, while those for the US varied.

As Trump launches an all-out assault on global commerce, the role of US Treasury bonds as the world’s safe haven is being called into question. Yields, particularly on longer-term debt, have risen in recent days, as the Dollar has fallen.

Even emerging-market currencies like the Korean Won and Thai Baht rose versus the dollar. A gauge of EM currencies increased by nearly 0.6%, on track for its highest day since August. Gains in the Yen boosted the Japanese currency to around 143 per Dollar on Friday, a level not seen since October. The Swiss Franc reached its highest level in a decade.

Oil prices fell for the second week in a row, but gold continued to rise.