US Futures and Stocks Rise on Auto Tariff Relief – Asia Market Wrap

Asian equities climbed to their highest level in a month on optimism that Trump may soften the impact of his auto tariffs, raising prospects for further reductions in trade hostilities.

A regional index rose 0.4%, while S&P 500 futures rose after a White House official announced that imported autos will be exempt from additional duties on aluminium and steel. Hyundai led the increases among South Korean automakers. The Dollar index rose 0.2%, while gold fell by up to 1.1%. Cash Treasuries are not traded in Asia because Tokyo is closed for a public holiday; they will resume trading at the start of the European session, however.

Tariffs continued to dominate headlines, with Treasury Secretary Bessent telling CNBC that the US has placed China on hold for the time being while negotiating trade accords with 15 to 17 other countries. He also stated that it is up to Beijing to take the initial step towards de-escalating the tariff dispute. Oil prices stabilised after a decline amid concerns of economic hardship in the US. This week, gold prices fell modestly ahead of critical economic data.

In Canada, the Liberal Party won its fourth consecutive election, electing former central banker Mark Carney. The Canadian currency fell against the greenback on predictions that Carney’s party will win a slim election victory.