With US Futures on Tariff Uncertainty, the Dollar Declines – Asia Market Wrap
The dollar and S&P 500 futures fell as a lack of clarity on trade policy dampened sentiment toward US assets and raised the likelihood of increased volatility in global markets.
Contracts on the US benchmark were down 0.7%, while Nasdaq 100 futures down 0.9%. The Japanese yen, Swiss franc, and euro led advances against the dollar, while a broader indicator of the greenback fell after last week’s rally. Bitcoin dropped roughly 5%, falling below $65,000, while gold and silver rose.
Monday’s developments suggested that investors were beginning to price in a bigger risk premium for US assets. Hours after the Supreme Court overturned his sweeping reciprocal tariffs on Friday, Trump announced a new 10% global charge and threatened to use other powers to continue his signature tariff policies. On Saturday, he announced that he will raise the new duty to 15%, causing additional economic uncertainty.
A barometer of Asian equities rose as much as 1% on Monday, powered by technology companies, on hopes that the court verdict could benefit two of the region’s largest economies, China and India, which have been stung the hardest by Trump’s tariffs. Economists predict that Asia’s weighted average tariff rate will reduce from 20% to 17%.
