Tokyo, Japan – Asian markets saw a slight uptick on Thursday as investors closely examined US President Donald Trump’s latest tariff announcements and Nvidia Corp.’s earnings report which failed to impress. Shares in Australia, Hong Kong, and Japan experienced gains, while those in South Korea declined. Chinese shares showed fluctuations in opening trade, with the region’s equities index rising for a second consecutive day.
Futures contracts for the S&P 500 and Nasdaq 100 remained steady following modest gains on Wednesday. Nvidia’s shares dipped in after-hours trading as the chipmaker delivered quarterly numbers that met expectations but fell short of exciting investors who were accustomed to exceptional results.
President Trump’s announcement of a 25% tariff on the European Union, along with the news that tariffs on Mexico and Canada would take effect on April 2, caused confusion among investors due to contradictory statements. The uncertainty surrounding trade policies continued to impact currency markets, leading to a rise in the dollar and a halt in the selloff of the Canadian dollar and Mexican peso.
Recent research suggests that Trump’s tariffs on Chinese imports may have a more substantial impact on the American economy than official US trade data indicates. The ongoing debate about the timing and extent of tariffs has kept investors cautious and uncertain about the future of trade relations.
The bond markets saw a slip after rallying on Wednesday, with the US 10-year yield reaching its lowest level since mid-December. The dollar maintained its gains from the previous day, while Australian yields dropped early Thursday. Meanwhile, Bitcoin experienced a significant drop, falling to around $84,000, more than a fifth lower than its recent peak.
In Asia, the yen traded around 149 per dollar, reflecting little change from the previous session. Japan’s top currency official expressed no concerns over market expectations of Bank of Japan interest rate hikes, which contributed to the yen reaching a four-month high earlier in the week.
Looking ahead, the Group-of-20 finance ministers and central bank governors are set to meet in Cape Town, with Eurozone consumer confidence figures and US economic indicators, including gross domestic product and initial jobless claims, scheduled for release. These events are likely to further influence market movements and investor sentiment in the coming days.
