On the Tariff Report, Chinese Stocks Rise While the Dollar Declines – Asia Market Wrap
Chinese stocks led Asia higher, as the Dollar fell on reports that members of Trump’s economic team discussed a cautious approach to increasing tariffs.
The Dollar index declined for the first time in six days, with New Zealand’s currency leading gains among Group-of-10 peers. Shares in China and Hong Kong increased, while those in Sydney and Taiwan also gained. US contracts rose, continuing the small gains recorded in the S&P 500 on Monday.
Given Trump’s threats to levy levies of up to 60% on Chinese imports, the prospect of progressively implementing US tariffs is causing some confidence in Asian markets. As the Fed has more room to cut interest rates, such a plan may alleviate inflation fears and reduce higher Treasury yields. Traders will also keep an eye on US inflation data this week, which could provide additional hints about the Fed’s rate path.
In Japan, the 40-year yield increased to its highest level since its introduction in 2007, owing to a global debt selloff and anticipation that the BoJ may hike interest rates in the future.
In Asia, China’s top securities regulator said it will work on developing a mechanism to stabilise the market, vowing to anchor expectations in 2025 following a poor start to the new year. Investors will also be looking forward to a briefing on financial support for high-quality economic development from central bank and State Administration of Foreign Exchange officials on Tuesday afternoon.
