Asian Equities Rise as US Tariff Delay Boosts Market Sentiment
Asian equities surged on Friday as markets cheered the postponement of potential US reciprocal tariffs, increasing the likelihood of negotiations.
Regional Gains
* Australian and Japanese equity index futures along with Hong Kong stocks advanced, indicating a potential third consecutive day of gains.
* An index of Chinese companies traded in the US rose over 1% in New York trading.
* Global stocks closed at a record high, with the S&P 500 and Nasdaq 100 climbing 1% and 1.4%, respectively.
Yield and Currency Movements
* Australian and New Zealand yields declined on Friday, mirroring Thursday's US Treasury moves.
* The 10-year US yield dropped nine basis points, reversing the previous day's rise.
* The dollar index against developed markets fell 0.7%.
* The yen remained steady against the dollar after gaining 1.1% on Thursday.
US Tariff Developments
* President Trump initiated consideration of reciprocal tariffs against trading partners, including Japan and South Korea.
* Commerce Department nominee Howard Lutnick stated that the process could conclude by April.
* Investors welcomed the extended timeline, viewing it as a potential negotiation tactic.
Other Market News
* KKR & Co. is exploring an investment in Nissan Motor after failed merger talks with Honda Motor.
* Data releases include unemployment in South Korea, GDP in Malaysia, and wholesale prices in India.
* Oil prices remained relatively unchanged on Thursday, rebounding from December lows due to the uncertainty surrounding tariffs and easing supply concerns from Russia.
Key Market Indicators
Stocks
* S&P 500 futures: Little change
* Hang Seng futures: +0.4%
* ASX 200: +0.7%
Currencies
* Dollar Index: Little change
* Euro: $1.0460
* Yen: 153.07 per dollar
* Offshore yuan: 7.2746 per dollar
* Australian dollar: $0.6314
Cryptocurrencies
* Bitcoin: $96,487.68
* Ether: $2,675.92
Bonds
* Australian 10-year yield: 4.40%
Commodities
* WTI crude: $71.41 per barrel
* Spot gold: $2,931.70 per ounce