As Trump Teases More Trade Talks, Stocks Rise – Asia Market Wrap

Most Asian indices climbed as Trump kept the door open for more trade discussions, giving markets a break after placing hefty tariffs on numerous countries.

South Korean stocks rose more than 1.4%, while the Nikkei-225 index gained 0.2%. The MSCI regional stock benchmark rose 0.1% after fluctuating between tiny gains and losses earlier Tuesday. The Won strengthened, while the Dollar index fell 0.2%. The Euro rose on reports that the US offered the EU an agreement with a 10% tariff threshold.

Japan’s 30-year government bond yields continued to rise. The Australian currency surged as the central bank stunned investors by leaving interest rates unchanged.

Late on Monday, Trump suggested he was still open to negotiations and delayed higher tariffs until at least August 1st, alleviating market concerns. Stocks have recovered from their April lows, when sweeping tariffs were originally announced, fuelled by hopes that the tariff deadline will be extended, based on Trump’s history of threatening first and then backing down.

Meanwhile, Japan’s super-long bonds continued their recent falls on Tuesday, bringing the 30-year bond yield closer to a record high as political worries continue to loom over the country’s financial markets.