Asian stocks advance on Trump’s tariff signals
Asian stocks rose early Tuesday after US equities enjoyed one of their best sessions of the year, fueled by signs that President Donald Trump’s trade sanctions will be narrower than feared.
Indexes in Australia and Japan advanced after Wall Street’s risk-on bid lifted shares of nearly all stripes in a rebound from a sharp selloff that has challenged the notion of US exceptionalism. The Nasdaq 100 added 2.2%. Hong Kong stocks were poised to drop at the open. Treasuries were little changed in Asian trading following a nine basis point climb in the 10-year yield to 4.33% on Monday.
Markets gripped by anxiety about the economic impact of an all-out trade war got relief from signs the coming wave of US tariffs is shaping up as more focused than the barrage Trump has occasionally threatened. The president twice on Monday signaled trading partners would receive possible exemptions or reductions.
“Stocks look to continue to rally from oversold levels, and any reduction in potential tariff impacts will be an upward catalyst,” said Ivan Feinseth at Tigress Financial Partners. “I believe we have seen the worst of the market’s pullback, though we will continue to see increased volatility at the beginning of next month based on the outcome of President Trump’s tariff policies.”
In Asia, China’s central bank unveiled a new method for pricing its one-year loans to banks, the latest move in policymakers’ efforts to revamp their monetary toolkit. The People’s Bank of China announced that banks will be able to bid for different