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International Business Times
7 hours ago
- Business
- International Business Times
Asian Markets Rally on Strong U.S. Jobs Data and Renewed China Trade Talks
There is a cautious yet optimistic tone in Asian markets this week. After a stressful week of economic anxiety, investors finally had a reason to breathe easier on Friday as job numbers in the United States beat expectations and a fresh round of trade talks between the United States and China offered a glimmer of hope. For many glued to the screen tickers from Tokyo to Hong Kong, it felt as if the week had begun on a mildly more hopeful note. Asian shares rallied on Monday, and the U.S. dollar weakened slightly. The catalyst was unexpectedly strong U.S. payroll data released late last week, which eased fears of a sharp economic slowdown. Wall Street had already cheered the news on Friday, sending major indices up. The S&P 500 gained 1 percent and the Nasdaq 1.2 percent. That momentum then carried over into Asia. Japan's Nikkei gained 0.9%, supported by strong earnings and signs of a rebound in international demand. The Hang Seng Index in Hong Kong climbed 1.3 percent, momentarily rising above the 24,000-point level — a level it hadn't reached since March. The MSCI Asia-Pacific index (excluding Japan) was up 0.5% in early trade. The upswing also follows last week's broader regional rally. The KOSPI in South Korea and STI in Singapore both surged, as traders took relief from the prospect of reduced tensions in the worldwide trade environment. But there was still uncertainty. New standoffs in Los Angeles over immigration policy led President Trump to send in the National Guard. The resulting turbulence sent a dose of caution through otherwise buoyant markets. While not directly linked to economic policy, this domestic volatility could spread to investor confidence internationally. Currency markets, meanwhile, reacted to the change in tone. The dollar fell 0.3 percent against the yen, and the euro rose to $1.1422. Traders will continue to closely watch upcoming U.S. inflation figures, which would likely guide the Federal Reserve's next move on interest rates. A great deal of attention now is focused on the already looming talks between Beijing and Washington, likely to start this week in London. Senior officials from both countries will hold talks, including U.S. Treasury Secretary Scott Bessent and China's China's Vice Premier He Lifeng. The discussions are expected to center on critical minerals, a market in which China is highly influential. Investors are keeping a close eye, and any progress could help deliver more economic stability in the second half of 2025. Gold prices slipped slightly, to $3,303.19 an ounce, and oil prices were mostly flat. U.S. crude was flat at around $64.56 after two days of gains, with supply factors and demand outlook for the global economy in investors' minds.
BusinessToday
22-04-2025
- Business
- BusinessToday
Asian Markets Struggle Amid US Economic Concerns And Dollar Weakness
Asian stock markets faced a challenging session on Tuesday, struggling to maintain their ground after US markets were rattled by concerns over President Donald Trump's attacks on the Federal Reserve and a continued sell-off in US assets. Wall Street saw a steep decline of around 2.5 per cent on Monday, with the dollar falling to three-year lows. The uncertainty surrounding the independence of the Federal Reserve weighed heavily on Treasuries. Despite the turmoil in the US, the losses in Asia were relatively limited, sparking discussions about the potential reallocation of funds to the region's equities. However, the ongoing concerns about the economic impact of tariffs remained a significant drag on the markets. 'The 'sell America' trade was in full flight,' said Tapas Strickland, head of market economics at NAB. He added that the President's vocal criticisms of Fed Chair Jerome Powell, particularly his call for rate cuts, underscored a loss of US exceptionalism and raised policy risks for investors. Strickland pointed out that the political tension was adding to the uncertainty surrounding the US economy. While the selling pressure eased slightly in Asia, it provided some relief for US stock futures, with S&P 500 futures rising 0.4 per cent and Nasdaq futures up 0.5 per cent. Despite this, the market remained on edge as the earnings season continued, with major companies such as Tesla, Alphabet, Boeing, Northrop Grumman, Lockheed Martin, and 3M set to report their results this week. Tesla had already seen a nearly 6 per cent drop on Monday amid reports of production delays. In Asia, Japan's Nikkei index dipped by 0.3 per cent, while the MSCI Asia-Pacific index excluding Japan fell by 0.2 per cent. However, Chinese blue-chip stocks held steady. European markets fared worse, with futures for the EUROSTOXX 50, FTSE, and DAX all down around 0.7 per cent amid volatile trading. The US bond market also reflected growing concerns. Yields on US 10-year notes stood at 4.40 per cent, having climbed due to fears that President Trump could attempt to replace Powell with someone more inclined to cut rates. This, combined with rising inflation driven by Trump's tariffs, further exacerbated the uncertainty. The White House's trade talks, which are ongoing or about to begin, added to the unease, as analysts at JPMorgan noted that the average trade deal takes 18 months to negotiate and 45 months to implement. The loss of confidence in US assets led to a sharp decline in the dollar, which hit its lowest point since March 2022 against a basket of currencies. The dollar also hit a decade-low against the Swiss franc at 0.8038, while the euro briefly rose above US$1.1500, settling at US$1.1486. In contrast, the dollar's weakness and a surge in demand for safe-haven assets helped gold reach a new record, surpassing US$3,343 an ounce. On the other hand, oil prices saw a slight recovery, with Brent rising 58 cents to US$66.82 a barrel, and US crude adding 51 cents to US$63.59 per barrel, as concerns about a global economic slowdown met the prospect of increased supply from OPEC. The markets now face a crucial week ahead, with earnings reports and trade developments likely to provide more clarity on the economic outlook. Reuters Related
