Asian equities experienced a rise on Tuesday following overnight gains on Wall Street. Gold reached an all-time high, while Treasury yields fell as the market prepared for the anticipated announcement of reciprocal tariffs from U.S. President Donald Trump. The Japanese yen gained strength, reflecting an increase in demand for traditional safe-haven assets.
Meanwhile, the risk-sensitive Australian dollar rebounded after the Reserve Bank of Australia (RBA) maintained interest rates, cautioning that global uncertainty could be significant. After a challenging March, where concerns about Trump’s trade initiatives raised fears of stagflation or a potential recession, regional stocks found some relief on the first trading day of April. Investors were eagerly awaiting April 2, noted by Trump as “Liberation Day,” when he is expected to disclose a comprehensive reciprocal tariff proposal.
Among the benchmarks, Australia’s index rose by 1%, South Korea’s KOSPI jumped by 1.9%, and Taiwan’s TWSE:TAIEX increased by 1.7%. However, Hong Kong’s Hang Seng and Japan’s Nikkei saw modest changes after initially gaining over 1%. The U.S. S&P 500 had a slight bounce of 0.55% on Monday, breaking a three-day downward trend.
Despite this, futures indicated a decline of 0.34%. Analyst Tony Sycamore noted that the positive shift in U.S. indices might be largely due to month-end adjustments and uncertainty surrounding Trump’s tariff announcements. Gold soared for the fourth consecutive session, hitting $3,148.88 per ounce.
Investment analyst Kyle Rodda attributed this spike to heightened risk aversion and the perceived threat to the U.S. dollar’s status as a global reserve currency due to the administration’s trade policies. Pressure on the dollar was evident, with Treasuries’ appeal driving down yields on benchmark 10-year notes, while geopolitical concerns continued to loom large. Oil prices saw a slight increase, bouncing back from previous gains, as Trump issued stern warnings regarding potential tariffs on Russian and Iranian crude.