Stocks Fall Following Nvidia’s Reduction as Gold Sets Record – Asia Market Wrap
A two-day surge in global stocks stopped as US trade tensions remained unresolved after the Trump administration slapped fresh curbs on Nvidia chip exports to China.
Chinese technology companies drove Asian equities lower, while equity index futures in the US and Europe fell alongside Nvidia in after-hours trade. Treasuries were barely changed after a two-day gain, and gold reached a new high on demand for haven assets. The Dollar lost some of its Tuesday gains as the Swiss Franc and Euro outperformed most currencies. Japanese long-term bonds have rallied.
Stocks are dropping after a brief recovery following last week’s volatility, as traders grapple with a spate of tariff stories, including Trump’s declaration of an investigation into the necessity for tariffs on key minerals. The flip flops have roiled global markets this month, as investors struggle to build long-term positions due to the unpredictability of Washington’s policy statements.
In Japan, 30-year bonds rebounded as Treasuries market volatility subsided, and BoJ’s Ueda hinted at a policy response to higher US tariffs. A sluggish economy may jeopardise the BoJ’s plans to gradually boost interest rates.
Meanwhile, the EU and the US tried to resolve trade tensions this week, with White House officials stating that the majority of US tariffs imposed on the union will not be lifted. Italian PM Meloni is also scheduled to arrive in Washington to meet with Trump. Oil prices remained stable after a little drop on Tuesday.
