Asia's Dance with Tariffs: Markets Navigate Trump Twist
Asian stock markets remain steady despite U.S. President Donald Trump's new tariff announcements affecting 14 countries. Markets showed resilience as Trump indicated flexibility on the tariff deadline. While the dollar gained, oil and gold prices fell. Negotiations with affected countries continue ahead of the August deadline.
Stock markets in Asia showed resilience as U.S. President Donald Trump unveiled new tariffs affecting 14 countries, including Japan and South Korea. Despite the announcement, which initially stirred a drop in Wall Street shares, Asian markets rebounded as Trump hinted at flexibility with the tariff deadline.
Japan's Nikkei turned positive after Trump's remarks, while Australia's decision to keep policy rates unchanged propelled the Aussie dollar upwards. However, volatility is expected as negotiations intensify towards the August 1 deadline, with markets recalling Trump's previous concession on similar tariff plans.
As Washington and Beijing work towards a fragile trade truce, tariffs set to rise on Japan and South Korea are causing concern. Meanwhile, the European Union opts for negotiation rather than receiving increased tariffs, aiming for a trade agreement soon. Despite global nerves, most Asian markets showed minor gains.
(With inputs from agencies.)
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