Stocks fluctuate as traders await next moves in Trump trade war
27 May 2025 16:33
HONG KONG (AFP) Equities in Asia and Europe were mixed Tuesday as investors awaited the latest developments in Donald Trump's trade war.With Wall Street closed for a holiday, there were few major catalysts to drive business, though investors remain on their toes after the US president's threat of 50 percent tariffs on European Union goods and subsequent delay reviving volatility.But analysts said the uncertainty caused by Trump's policy announcements, along with his plans to extend tax cuts, was hurting confidence in the US economy and pushing Treasury yields higher.Europe bounced on the news of the tariff delay, and European Commission President Ursula von der Leyen's pledge to move swiftly on a trade deal with the White House.But Asia swung between gains and losses.Tokyo, Hong Kong, Sydney, Singapore, and Wellington all rose with London as it reopened after a long weekend, while Frankfurt and Paris also extended Monday's gains.Shanghai, Seoul, Manila, Mumbai, Jakarta, Bangkok, and Taipei were slightly lower. The yen rose against the dollar after BoJ boss Kazuo Ueda said he intended to keep raising borrowing costs if the economy performs as expected.But the Japanese currency reversed course after yields on Japanese bonds sank after reports of a questionnaire from the finance ministry asking market players for their views on debt issuance.The yen, which hit 142.12 per dollar in early trade, retreated to 143.86 in the afternoon.Still, the dollar remains under pressure against its main peers as investors look nervously at Trump's trade policy and tax bill, which could add trillions to the US national debt, putting upward pressure on US yields.
Traders are also awaiting the release of minutes from the Federal Reserve's May policy meeting, hoping for an idea about its plans in light of the trade war, while the central bank's preferred inflation gauge is due at the end of the week.
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