Asian markets mostly declined on Tuesday following U.S. President Donald Trump’s decision to impose 25% tariffs on all U.S. steel and aluminum imports, fueling global trade tensions.
Hong Kong’s Hang Seng index dropped 1.06% to 21,294.86, while China’s Shanghai Composite dipped 0.12% to 3,318.06. Japan’s markets were closed for a holiday, and Australia’s S&P/ASX 200 remained relatively flat. South Korea’s KOSPI, however, saw a 0.71% increase to 2,539.05.
In Europe, early trading showed mixed results. France’s CAC 40 slipped 0.05%, Britain’s FTSE 100 fell 0.05%, while Germany’s DAX edged up 0.02%.
Wall Street has been volatile amid fears of escalating tariffs. Gold prices surged again on Monday, reaching a record high of $2,930 per ounce as investors sought safe-haven assets. Meanwhile, Dow Jones futures fell 82 points (0.18%), with S&P 500 and Nasdaq 100 futures declining 0.28% and 0.36%, respectively.
Analysts suggest that while China’s response has been measured, trade tensions between the U.S. and China are likely to escalate. “A tit-for-tat trade war remains a looming threat,” noted Vishnu Varathan, head of macro research at Mizuho.
The S&P 500 gained 40.45 points to close at 6,066.44, the Dow Jones Industrial Average rose 167.01 points to 44,470.41, and the Nasdaq climbed 190.87 points to 19,714.27.
Bond markets held steady, with the 10-year U.S. Treasury yield at 4.50% and the 2-year Treasury yield dipping to 4.27%. Investors are closely watching Federal Reserve Chair Jerome Powell’s upcoming testimony before Congress for potential signals on interest rate cuts.
In energy markets, U.S. crude rose 88 cents to $73.20 a barrel, while Brent crude gained 84 cents to $76.71 a barrel. The U.S. dollar remained stable at 151.96 Japanese yen, while the euro traded at $1.0318.
