Dollar Declines & Stocks Rise on Tech Tariff Pause – Asia Market Wrap

Asian equities rose as Trump halted import taxes on a variety of consumer devices, boosting morale after a turbulent week in markets.

Gauges in the area rose alongside equity-index futures in the US and Europe after Trump delayed some tech tariffs, though he suggested that a particular levy will be issued in due time.

While equities temporarily recovered, concerns about the US economy grew, with the currency falling to a new low for the year. Gold, a classic safe haven asset, reached a new high, signalling that market investors are still concerned about Trump’s tariff strategy. US Treasury yields edged down across the curve.

The suspension of taxes on commodities ranging from cellphones to laptop computers, the majority of which are manufactured in China, provides an interim respite for markets battered by Trump’s trade policy shifts. Volatility is high as the White House announced separate taxes on tech products, including semiconductor chips, as Trump attempts to change global trade laws that he claims are unfair to the US.

In commodities, oil held above a four-year low as markets considered the new US measures. Goldman Sachs forecasts “large surpluses” in the global oil market this year and next as the trade war drags on demand.