Asian Markets Slide as AI Valuation Concerns, Trump's Tariff Talk Weigh
Tokyo: Asian equity indices experienced a decline on Tuesday, with concerns over tech valuations continuing and US President Donald Trump advocating for higher tariffs.
Market Overview
* MSCI Asia Pacific Index slipped up to 0.6%, dragged down by Japanese tech giants.
* Nikkei 225 Stock Average retreated 1%, while the broader Topix reversed earlier losses.
* Advantest Corp. plunged 11%, and SoftBank Group Corp. fell 6%.
Trump's Tariff Talk
* Trump called for "much bigger" across-the-board tariffs than 2.5%.
* He intends to impose levies on foreign semiconductors, pharmaceuticals, and metals.
* The dollar strengthened against G-10 peers in response.
Asian Market Stability
* Despite initial losses, the Hang Seng Index closed marginally higher.
* Billy Leung of Global X ETFs suggests a sectoral rotation rather than a market collapse.
US Equity Futures
* US equity futures showed little change in Asia after Monday's selloff.
* Treasuries edged lower, with the 10-year yield rising one basis point.
Commodities
* Copper declined after Trump's announcement of tariffs on the metal.
Corporate News
* China Vanke Co. shares surged 14% in Hong Kong after government support.
Key Events This Week
* US consumer confidence and durable goods (Tuesday)
* Fed rate decision and Powell's press conference (Wednesday)
* Microsoft and Apple earnings (Wednesday)
* Eurozone ECB rate decision (Thursday)
Key Market Movements
Stocks
* S&P 500 futures (unchanged)
* Hang Seng futures (+0.3%)
* Nikkei 225 futures (-1%)
* Topix (unchanged)
* S&P/ASX 200 (unchanged)
* Euro Stoxx 50 futures (+0.2%)
Currencies
* Bloomberg Dollar Spot Index (+0.5%)
* Euro (-0.6%)
* Japanese yen (-0.9%)
* Offshore yuan (-0.4%)
Cryptocurrencies
* Bitcoin (+1.7%)
* Ether (+1.4%)
Bonds
* 10-year Treasury yield (+2 basis points)
* Japan's 10-year yield (-2 basis points)
* Australia's 10-year yield (-5 basis points)
Commodities
* West Texas Intermediate crude (+0.5%)
* Spot gold (unchanged)