Markets across Asia drifted on Thursday, paring earlier gains as investors grappled with the U.S. administration’s mixed signals on tariffs and Federal Reserve leadership. A rebound in the dollar also lost steam, underpinning a cautious tone.
Market Overview
MSCI Asia ex-Japan: –0.72%
Nikkei 225: +0.4%
Hang Seng: –1.0%
CSI 300: +0.06%
U.S. Futures: S&P 500 Futures –0.23%, Nasdaq 100 Futures –0.32%
Policy Whiplash Weighs on Sentiment
Fed Uncertainty
Trump’s week-long attack on Fed Chair Powell, followed by a retraction, has left markets unsure of U.S. monetary policy’s independence.
Treasury Secretary Bessent echoed this, saying any tariff cuts would not be unilateral—a far cry from headlines suggesting immediate de-escalation.
Tariff Talk Turmoil
The White House reportedly eyed cutting China tariffs to 50–60%, but Bessent and White House spokespeople later clarified no standalone offer exists.
Investors remain wary that any deal requires Beijing to make the first move—something China has signaled it won’t do.
Regional Highlights
Japan
Tariff negotiator Ryosei Akazawa prepares for U.S. visit (April 30) to resume talks—boosting automakers Toyota (+5%) and Honda (+2%).
South Korea
KOSPI underperformed after Q1 GDP unexpectedly contracted, offsetting strong SK Hynix (NVDA supplier) earnings.
China
CSI 300 flat; PBoC governor reiterated support for multilateral trade, signalling Beijing’s resistance to U.S. pressure.
FX & Bond Reaction
A firmer dollar and volatile yield moves reflected reduced confidence in policy predictability. Safe-haven flows into JPY were balanced by dollar strength.
For live currency pair updates, see the? Daily Forex Rates APIfrom Financial Modeling Prep.
What’s Next
Flash PMIs (Wed): Early barometer of global growth under trade stress.
Durable Goods Orders (Thu): Gauge of capex ahead of tariffs.
Trade Talks Updates: Any clarity on U.S.–China or U.S.–Japan negotiations will drive market direction.
Investors should brace for continued choppiness as policy rhetoric remains unpredictable. Defensive positioning and real-time monitoring of trade and central bank signals will be key to navigating this environment.
