Investor caution is sharpening as markets await President Trump’s so-called “Liberation Day”, with global equities fluctuating and safe-haven assets like gold gaining momentum. While most Asian markets posted modest gains, traders are navigating a landscape shaped by geopolitical tension, shifting monetary expectations, and uncertainty around impending U.S. tariff moves.
Asian stocks largely advanced on Tuesday, buoyed by Wall Street’s Monday rally, though the mood remained cautious ahead of President Trump’s expected tariff announcement. Investors rotated into safer assets, driving gold to a session high of $3,172.80 per ounce. Despite market gains, sentiment was tempered by concerns that new trade measures could disrupt global supply chains and spark inflationary pressures.
Tokyo’s Nikkei 225 rose 0.1% to 35,663.86 amid diplomatic overtures from Prime Minister Shigeru Ishiba, who urged the U.S. not to escalate tariffs on Japanese auto exports. However, a central bank survey reflected weakening sentiment among Japan’s leading manufacturers, hinting at underlying fragility in the region’s industrial sector.
Hong Kong’s Hang Seng Index advanced 1.1% to 23,363.96, while China’s Shanghai Composite added 0.6% to 3,355.31, as investors remained cautiously optimistic despite geopolitical headwinds. South Korea’s Kospi posted a robust 1.8% gain, reaching 2,525.44, and Australia’s S&P/ASX 200 climbed 1% to 7,919.50, supported by energy and materials stocks. Taiwan’s Taiex led regional performance with a 2.6% surge, while Thailand’s SET rose 1.1%. India’s Sensex lagged slightly, edging down 0.2%.
Wall Street provided some tailwind, with the Dow Jones Industrial Average up 1% to 42,001.76 and the S&P 500 climbing 0.6% to 5,611.85. However, March’s 4.6% decline dragged the S&P to its worst quarterly performance in over two years. The Nasdaq Composite dipped 0.1%, weighed down by Tesla and Nvidia.
Market volatility has intensified as investors weigh the possible fallout from the White House’s upcoming tariff strategy. Trump’s “reciprocal tariffs”, expected Wednesday, are touted as a corrective measure to rebalance global trade. Yet, with limited clarity on specifics, investor unease remains. Goldman Sachs forecasts an average tariff rate of 15%, prompting it to downgrade U.S. growth projections and raise the probability of a recession in the next year to 35%, citing declining business confidence and a combative policy stance from Washington.
The tariff announcement could serve as a market catalyst in either direction. If measures prove less punitive than feared—especially regarding Chinese imports—markets may rally. Conversely, sweeping tariffs risk damaging corporate sentiment and dampening hiring, potentially triggering broader economic strain. Even a measured policy may leave uncertainty unresolved, affecting household and business spending.
Tesla continued its downward spiral, shedding 1.7% and deepening its year-to-date loss to nearly 36%. Investors remain uneasy about the company’s reliance on CEO Elon Musk, whose political entanglements have made Tesla a flashpoint in U.S. policy debates.
In contrast, Mr. Cooper surged 14.5% after its acquisition by Rocket in a $9.4 billion all-stock deal. The acquisition follows Rocket’s recent purchase of real estate platform Redfin. Despite the move, Rocket shares declined 7.4% on the day. Berkshire Hathaway added 1.2%, lending strength to the broader market.
Newsmax stole the spotlight with a staggering 735% surge on its trading debut, triggering multiple trading halts throughout the day due to extreme volatility.
Oil markets saw mild gains early Tuesday, with U.S. crude up 17 cents at $71.65 and Brent crude rising 19 cents to $74.96. The dollar weakened against the yen, trading at 149.57, while the euro inched higher to $1.0825.
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