Asian markets edged toward the close of the week on Friday, trailing behind a lackluster performance from Wall Street. While sentiment had been buoyed by the recent dovish stance of the U.S. Federal Reserve, concerns over President Donald Trump’s ongoing tariffs persisted.
Traders found encouragement in remarks made by U.S. Federal Reserve Chair Jerome Powell, who suggested that the effects of significant tariffs placed on imports from major trading partners might only be temporary. Additionally, they were buoyed by official projections indicating an anticipated avoidance of the expected economic downturn later this year.
This occurred just days following China announced various initiatives intended to stimulate consumer expenditure and revitalize the globe’s second-largest economy.
Nevertheless, Trump's aggressive trade strategies keep casting a long shadow, restraining optimism and the willingness to take risks.
Following uneventful central bank gatherings in the U.S., Japan, Britain, and Sweden—with no significant announcements or changes to monetary policies—the spotlight has shifted back to trade tariffs. The new round of tariff increases is set to take effect early in April.
The ambiguity around U.S. policy — where the White House introduces, postpones, and subsequently reinstates tariffs without much warning — has forced traders to adopt a cautious approach and retreat temporarily.
Equity investors are once again concentrating on the uncertainties and potential adverse effects of an impending trade war," stated Rodrigo Catril from National Australia Bank. "The sentiment is still delicate, as investors remain anxious and uncertain about whether they should be taking on more risks or reducing them.
The major shadow hanging over us is tariff uncertainty, particularly with the upcoming release of the America First Trade Report scheduled for April 2nd.
During early trading, stocks in Hong Kong, Shanghai, Singapore, Taipei, and Manila fell into negative territory, whereas Tokyo, Sydney, Seoul, and Wellington showed slight increases.
Concern over the future trajectory is continuing to drive up gold prices as investors look for refuge from market fluctuations. On Friday, the precious metal remained slightly under the peak of $3,057.49 per ounce reached on Thursday.
Oil prices were increasing due to escalating geopolitical tensions, with Israel intensifying assaults in Gaza and U.S. forces targeting Iran-supported Houthi insurgents in Yemen.
The news that Washington had imposed sanctions on a China-based oil refinery for purchasing approximately $500 million worth of Iranian oil through vessels linked to the Houthis heightened traders' worries.
Following his return to office, Trump has reinstated his strategy of "maximum pressure" targeting Tehran. He has already implemented sanctions against multiple individuals and organizations, notably including Iran’s oil minister.
Key individuals at approximately 0230 GMT
Tokyo - Nikkei 225: Increased by 0.4% to reach 37,890.42
Hong Kong - Hang Seng Index: Down 0.2% at 24,167.75
Shanghai - Aggregate: DECREASED BY 0.1% TO 3,406.67
Euro/dollar: DECLINED to $1.0854 from $1.0856 observed on Thursday
Pound/dollar: FALLING to $1.2966 from $1.2967
Dollar/Yen: Increased to 149.15 yen from 148.76 yen
Euro/pound: INCREASED to 83.74 pence from 83.72 pence
West Texas Intermediate: Increased by 0.7% to reach $68.51 per barrel.
Brent North Sea Crude: Increased by 0.6% to $72.40 per barrel
New York - The Dow decreased by less than 0.1% to close at 41,953.32 points.
London - FTSE 100: Decreased by under 0.1 percent to close at 8,701.99.
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