Asian stock rally fades fast along with US dollar after Trump’s trade deals

By: bitcoin ethereum news|2025/05/13 16:30:09
0
Share
copy
Asian markets broke down on Tuesday just as fast as they had rallied on Monday. Traders across the region walked away from early gains after fresh fears over president Donald Trump’s trade decisions began creeping in. According to Reuters, the rally that kicked off after a 90-day truce between the US and China failed to hold. Wall Street’s Monday surge didn’t carry over. European futures pointed lower. Chinese stocks stayed flat. S&P 500 and Nasdaq futures slid during the Asian session. Trump’s temporary pause in tariff hikes wasn’t enough to convince the markets that anything permanent was on the table. Asia turns cautious despite tariff reductions The MSCI Asia-Pacific Index outside Japan dropped 0.2%, right after hitting a six-month high earlier that same morning. Fitch Ratings laid out the numbers. The US effective tariff rate fell to 13.1% after the announcement—down from 22.8% before—but that’s still much higher than the 2.3% average seen at the end of 2024, and the highest since 1941. The market was already tense after Trump launched his tariff campaign back in early April. Since then, investors have been pulling money out of US assets and moving to safe havens like the yen, the Swiss franc, and gold. Trump’s new terms reduce tariffs on Chinese goods from 145% to 30%, and China agreed to cut tariffs on US imports from 125% to 10%. That sounded like progress on paper, but it didn’t move the needle in the markets. The sense was that this was a tactical pause, not a resolution. Hong Kong’s Hang Seng index fell 1.67%, clearly reacting to the weak confidence. Over in Japan, the Nikkei jumped more than 2%, reaching its highest level since February 25. But even that spike wasn’t enough to convince people the situation was improving. Traders shift attention to inflation after trade pause Investors are now waiting to see what actually happens once the 90-day trade pause expires. But even before that, eyes are locked on US inflation numbers expected later on Tuesday. Those figures could have an impact on where the Federal Reserve goes next with rate policy. Matt Simpson, a senior market analyst at City Index, explained the thinking. “Should we be treated to another set of soft CPI figures, it could allow traders to refocus on Fed policy and the potential for cuts, and take some steam out of the dollar’s rebound,” Simpson said . Right now, traders have walked back their rate cut expectations. At the peak of trade panic in April, they were betting on more than 100 basis points of cuts. That’s now down to just 56 basis points for the rest of the year. US Treasury yields backed that up. The 2-year yield hit 3.9873%, and the 10-year was at 4.4512%, both sitting near one-month highs during Tuesday’s early trading session. That tells you people aren’t rushing into bonds the way they were last month. In crypto, bitcoin stayed steady at $102,676, sitting above the $100,000 level it passed last week. No big moves in that space despite the broader market weakness. Traders weren’t using bitcoin as a flight-to-safety asset on Tuesday. On the commodities side, oil prices dipped slightly after climbing to a two-week high on Monday when the trade agreement was first announced. As for gold, prices bounced back a bit after dropping 2% the day before. Investors who briefly dumped safe havens returned as confidence in the trade deal fell apart. KEY Difference Wire helps crypto brands break through and dominate headlines fast Source: https://www.cryptopolitan.com/asian-stock-rally-fades-fast-along-with-usd/

You may also like

Tiger Research: What AI services do cryptocurrency companies offer?

Cryptocurrency giants like Binance and Coinbase have fully launched an AI defense battle: Driven by FOMO sentiment, leading platforms are accelerating the deep integration of AI agents into core businesses such as trading, security, and payments.

The war not only drives up oil prices but also causes Circle's stock price to soar

High interest rate expectations combined with the explosive growth of stablecoin infrastructure have led to Circle's stock price doubling in five weeks against the trend: Understanding the dual game of "macro interest rate trading" and "global payment foundation" behind the surge in one article.

When agents become consumers, who will rewrite the underlying logic of internet commerce?

Thirty years ago, due to the high cost of micropayments, the internet had no choice but to adopt an advertising model. Today, the technical threshold for micropayments is nearly zero, but trust has become the most expensive luxury. Whoever can bridge this gap will dominate the next generation of int...

AI Agents in Action Summit: March 31, Hong Kong Cyberport, focusing on the deep waters of AI implementation

Tomorrow, Hong Kong Cyberport will grandly open. The "AI Agents in Action" summit gathers top experts, directly addressing the real evolution of AI Agents from conceptual celebration to productization and large-scale commercial implementation.

29 Days In, What Are America’s Options on Iran?

The key is not in ground invasion but in the combination of striking capability and governance.

Flash Crash Down 97%+ with Ongoing Unlocking, WLD Completes $65 Million Off-chain Funding: Who Is Still Buying?

In the current deep bear market environment, being able to complete multi-million dollar token trades is quite rare.

Popular coins

Latest Crypto News

Read more