Asian markets climb on buoyant trade deal optimism
Asian Markets Gained Momentum as Trump Threatened New Tariffs
Most Asian stock indices rose on Monday after investors weighed the United States president’s latest trade‑war warnings. Trump announced a 30 percent tariff on goods from the European Union and Mexico, sparking further uncertainty.
Trump’s Tariff Announce Sparks Global Concerns
- Trump warned of a 50 percent levy on copper and Brazilian products, a 35 percent duty on Canadian goods, and a possible 200 percent charge on pharmaceuticals.
- Observers cautioned that the measures could severely damage the global economy, while many investors remained optimistic that governments would reach agreements before the White House’s August 1 deadline.
- In his latest revelation on Saturday, Trump cited Mexico’s role in illicit drug flows into the United States and a trade imbalance with the European Union.
European Union Responds with Diplomacy
European Commission chief Ursula von der Leyen insisted the bloc still seeks an accord, delaying retaliatory duties on steel and aluminium as a sign of goodwill. EU officials threatened in May to impose tariffs on U.S. goods worth around 100 billion euros ($117 billion), including cars and planes, if talks fail.
French President Emmanuel Macron backed efforts to reach an agreement that “reflects the respect that trade partners such as the European Union and the United States owe each other.” He urged the bloc to “step up the preparation of credible countermeasures” if negotiations break down.
Asian Investors Remain Hopeful
- Hong Kong, Shanghai, Sydney, Seoul, Singapore, Manila and Jakarta all rose, with Tokyo, Wellington and Taipei edging down.
- Bitcoin hit a new record high of $119,490.
- National Australia Bank’s Taylor Nugent said it is hard to determine whether the muted market response over the week is best characterised by resilience or complacency.
- Traders kept a nervous eye on the Federal Reserve as Trump continued to berate Chairman Jerome Powell for not cutting interest rates.
Key Market Figures at 02:30 GMT
- Tokyo Nikkei 225: DOWN 0.3 % at 39,469.72
- Hong Kong Hang Seng Index: UP 0.1 % at 24,174.34
- Shanghai Composite: UP 0.4 % at 3,524.93
- Euro/dollar: UP at $1.1693 from $1.1690
- Pound/dollar: DOWN at $1.3496 from $1.3497
- Dollar/yen: DOWN at 147.01 yen from 147.38 yen
- Euro/pound: UP at 86.64 pence from 86.59 pence
- West Texas Intermediate: UP 0.1 % at $68.52 per barrel
- Brent North Sea Crude: UP 0.1 % at $70.43 per barrel
- New York Dow: DOWN 0.6 % at 44,371.51
- London FTSE 100: DOWN 0.4 % at 8,941.12
