US stocks slipped on Friday, but Asian markets rose amid optimism about a Japan-US trade deal. The deal aims to ease tensions between the two economic superpowers and reduce tariffs imposed by President Trump.
The news lifted Tokyo and other Asian markets, with Seoul, Bangkok, and Taipei also gaining ground. However, Shanghai edged down due to its own domestic economic challenges.
Trump’s remarks that he was reluctant to hike levies on Beijing provided some support. The US president also hinted at the possibility of an easing of tensions between China and the US.
The deal is seen as a canary in the mine for the countries’ long-running relationship. Japanese negotiator Ryosei Akazawa met Trump, Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent without making any immediate progress. A second round of talks is scheduled for the end of April.
The US ambassador to Japan, George Glass, expressed “extremely optimistic” hopes that a deal would be reached. Despite this, uncertainty caused by Trump’s tendency to flip-flop keeps investors on edge.
Washington has unveiled new port fees on Chinese-built ships, aiming to boost its domestic shipbuilding industry and curb China’s dominance in the sector. This move may further ratchet up tensions.
The Federal Reserve is also under scrutiny as Trump criticized boss Jerome Powell for not lowering interest rates. The ECB has done so, but Trump believes his “termination” of the Fed could happen quickly if he wanted it to.
Market analysts see significant ripples in the US economy due to the tariff policy and a collapse in consumer confidence. The chaos caused by the US administration is giving businesses cause for concern.
In other news, Chinese battery maker CATL shares dropped 0.2% after US lawmakers asked Wall Street titans JP Morgan and Bank of America not to work on its planned initial public offering in Hong Kong.
Source: https://finance.yahoo.com/news/asian-markets-mixed-traders-track-030416752.html