Equities Rise as Markets Sense Reciprocal Tariffs Weeks Away, Raising Negotiation Hopes
Key Points
* Asian shares climbed for a third day, extending the S&P 500's near-record close on Thursday.
* The dollar weakened while the yen gained as investors bet on tariff impact mitigation through negotiations.
* Speculation emerged that reciprocal tariffs serve as a negotiating tool, eroding dollar gains driven by trade threats.
* China's growing AI capabilities boosted its stock market, while India's equity funds face potential outflows due to market decline.
* Gold remained near record highs, driven by haven demand, with potential to test $3,000 an ounce.
Market Moves
Stocks
* S&P 500 futures surged 0.2%
* Nasdaq 100 futures jumped 0.2%
* Dow Jones Industrial Average futures gained 0.1%
* MSCI Asia Pacific Index advanced 0.5%
* MSCI Emerging Markets Index climbed 0.6%
Currencies
* Bloomberg Dollar Spot Index largely unchanged
* Euro stable at $1.0468
* Japanese yen marginally higher at 152.65 against the dollar
* Offshore yuan steady at 7.2748 per dollar
* British pound remained at $1.2570
Cryptocurrencies
* Bitcoin increased by 0.5% to $97,007.53
* Ether rose by 1.3% to $2,703.23
Bonds
* Yield on 10-year Treasuries remained unchanged at 4.54%
* Germany's 10-year yield steady at 2.43%
* Britain's 10-year yield declined to 4.49%
Commodities
* Brent crude futures advanced 0.5% to $75.38 per barrel
* Spot gold marginally higher at $2,932.30 an ounce