Asian shares are mostly down as Trump's tariff deadline looms and pressure steps up
'We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump's reciprocal tariffs expires for non-China trading partners,' the Nomura Group wrote in a commentary.
It said the near-term outlook will likely hinge on several key factors like the extent to which trading partners are included in Trump letters, the rate of tariffs, and the effective date of such tariffs. A more distant implementation date might leave scope for some last-minute trade negotiations and maintain market optimism for potential resolutions or extensions, it added.
'With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn't clear, but the terrain is littered with risk,' Stephen Innes, managing partner at SPI Asset Management said in a commentary.
On Thursday, a report showed the U.S. job market performed stronger than Wall Street expected. The S&P 500 rose 0.8% and set an all-time high for the fourth time in five days. The Dow Jones Industrial Average added 344 points, or 0.8%, and the Nasdaq composite gained 1%.
In other dealings Monday, the U.S. dollar rose to 144.77 Japanese yen from 144.44 yen. The euro edged lower to $1.1772 from $1.1779.
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