Global Stocks Rise on Trade Progress; Dollar Dips Amid US Tax Talks – Asia Market Wrap
Stock-index futures advanced and Asian equities rose as progress in several trade negotiations boosted risk appetite.
Contracts for the S&P 500 rose 0.4% after the index closed at a record Friday. Futures for European stocks advanced 0.4%. Asian shares rose 0.2% with the Nikkei-225 index gaining 1.1% after Japan’s top negotiator extended his stay in the US for further talks. The Canadian dollar strengthened after the country rescinded its digital services tax to advance discussions with the US.
A gauge of the dollar dipped 0.3% as Senate negotiations continued over President Donald Trump’s $4.5 trillion tax-cut package. The Dollar Index has posted its worst start to a year since at least 2005. Crude oil fell 0.5% as traders wound back risk premiums before the OPEC+ meeting. Treasuries edged down.
US stocks rose to a fresh all-time high on Friday for the first time since February, underscoring the conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a boost for equities. A gauge of Asian stocks is set to climb more than 4% for a second month as investors look past tariff angst and recent tensions the Middle East.
Canada withdrew its digital services tax on technology companies in a move to restart talks with the US. Prime Minister Mark Carney and Trump agreed that the two countries will resume negotiations with a view toward agreeing on a deal by July 21.
