Asia Stocks Steady As Tariff Talk Sinks Copper Prices: Markets Wrap
Benchmark copper futures fell in London after Trump said he planned to implement a 50% tariff on imports, a move that’s likely to spark further upheaval in global metal markets.
Asian shares opened cautiously as investors held back from taking risky bets after President Donald Trump ruled out extending his August deadline. Copper futures fell on Trump’s tariff threat.
Shares in Japan rose and those in Australia fell while a broader gauge of Asian shares dipped 0.1%. Benchmark copper futures fell in London after Trump said he planned to implement a 50% tariff on imports, a move that’s likely to spark further upheaval in global metal markets. US copper prices had a record gain in the last session on Trump’s remarks.
Trump signaled a renewed determination to push ahead with his plans to heavily tax foreign imports. He also told reporters that despite progress with the European Union on a trade deal, frustration over the bloc’s taxes and fines targeting US technology firms could result in him unilaterally declaring a new tariff rate within the next two days.
“The market’s response to this week’s barrage of tariff headlines has been one of indifference, having absorbed the lessons of Liberation Day, where timelines were extended, levy rates were reduced, and trade deals were brokered,” said Tony Sycamore, a market analyst at IG Australia. “This indifference is expected to continue until either the hard economic data starts to turn lower or inflation spikes higher.”
Trump vowed to push forward with his aggressive tariff regime in the coming days, stressing he would not offer additional extensions on country-specific levies set to now hit in early August while indicating he could announce substantial new rates on imports of copper and pharmaceuticals.
The posturing on social media and at a Cabinet meeting on Tuesday came after traders initially shrugged off a series of letters and executive actions Trump issued Monday, pushing back the deadline for his so-called “reciprocal” tariffs while announcing the latest rates he planned for more than a dozen countries that had not succeeded in brokering quick trade agreements.
“While tariffs will likely remain high — compared with levels at the start of the year — as will the headline risk, we think the US effective tariff rate should end the year at around 15%,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. “This would be a headwind to growth but not enough to trigger a recession.”
She continued to recommend phasing into global equities or diversified portfolios to navigate volatility ahead.
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 9:23 a.m. Tokyo time
Hang Seng futures were little changed
Japan’s Topix rose 0.2%
Australia’s S&P/ASX 200 fell 0.5%
Euro Stoxx 50 futures rose 0.5%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1722
The Japanese yen fell 0.2% to 146.83 per dollar
The offshore yuan was little changed at 7.1848 per dollar
Cryptocurrencies
Bitcoin rose 0.2% to $108,872.39
Ether rose 0.4% to $2,609.3
Bonds
The yield on 10-year Treasuries was little changed at 4.40%
Japan’s 10-year yield was unchanged at 1.490%
Australia’s 10-year yield advanced six basis points to 4.33%
Commodities
West Texas Intermediate crude fell 0.4% to $68.09 a barrel
Spot gold rose 0.1% to $3,306.22 an ounce
This story was produced with the assistance of Bloomberg Automation.
