Asia Stocks Poised for Gains as Trump Tariffs Hit Pause

US stock gains are poised to extend to Asia on Friday, buoyed by a rebound in Treasury yields and a decline in the dollar. President Donald Trump's announcement of reciprocal tariffs has eased market concerns, as the implementation timeline suggests a gradual approach.

Equity Futures Surge

Equity futures for Japan, Australia, and Hong Kong are all indicating a potential third day of gains in the region. An index of Chinese companies listed in the US rose over 1% in New York trading.

S&P 500 Nears Record High

The S&P 500 climbed 1% on Thursday, closing just short of its record closing high. The Nasdaq 100 outperformed with a 1.4% gain, as tech stocks such as Tesla Inc., Nvidia Corp., and Meta Platforms Inc. rallied strongly.

Treasuries Rebound

Treasuries largely recovered losses from the previous session. The 10-year yield declined nine basis points, while Australian and New Zealand yields also fell early Friday.

Dollar Weakens

A gauge tracking the dollar's performance against developed-market peers dropped 0.7%. The yen surged 1.1% on Thursday, while the Canadian dollar reached a new high for the year.

Reciprocal Tariffs Postponed

President Trump has instructed his administration to consider imposing reciprocal tariffs on various trading partners. However, the timeline for the process, which involves country-by-country levies, has allayed some market concerns.

Asia News in Brief

* US private equity firm KKR & Co. is reportedly considering investing in Nissan Motor Co. after the automaker's merger talks with Honda Motor Co. fell through.
* Data releases in the region on Friday include unemployment in South Korea, GDP for Malaysia, and wholesale prices for India.

Commodities Mixed

Oil prices settled little changed on Thursday, rebounding from the lowest levels since December. Gold rose for a second consecutive day, inching closer to the recent record high.

Key Events This Week

* Eurozone GDP (Friday)
* US retail sales, industrial production, business inventories (Friday)
* Speech by Fed's Lorie Logan (Friday)