US President Donald Trump’s weekend tariffs have sparked a volatile Asian market session. However, the news that the US will put 25% import tariffs on Mexico and Canada on hold for a month has brought some relief.
Asian markets were hit hard by Trump’s announcement on Saturday, but the Mexican government’s decision to delay imposing tariffs has helped them recover some losses. Japanese futures are pointing to a rebound of over 1% on Tuesday, which could provide a boost to Asian markets.
The US Treasury yields fell on Monday, defying expectations, and this may have a positive impact on Asia’s markets. Investors still expect two more quarter-point cuts in US interest rates this year, which could also contribute to the market’s recovery.
Looking ahead to Tuesday, several key events will shape Asian and global markets. These include U.S. tariff fallout, Japan corporate earnings, and offshore Chinese stocks. As markets adjust to the new developments, investors may breathe a sigh of relief, at least for now.
Source: https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-2025-02-03