Stock markets were mixed on Tuesday as investors remained cautious over potential developments in former U.S. President Donald Trump’s ongoing trade war. With Wall Street closed for a holiday, global equities experienced light trading, although volatility persisted due to President Trump’s unpredictable tariff policies.
Last week, Trump threatened a 50% tariff on European Union goods but later delayed the implementation—a move that temporarily eased investor tension. European markets rebounded on the delay and European Commission President Ursula von der Leyen’s renewed push for a trade agreement with the U.S.
In Asia, markets fluctuate. Gains were recorded in Hong Kong, Sydney, Singapore, Jakarta, Manila, and Wellington. However, Tokyo, Shanghai, Seoul, and Taipei posted slight losses.
The Japanese yen strengthened after Bank of Japan Governor Kazuo Ueda signaled possible interest rate hikes if economic conditions improve. Speaking at a Tokyo conference, Ueda noted that monetary policy would be adjusted as needed, despite recent downward revisions to Japan’s growth outlook.
“The outlook for inflation has been revised, but we expect it to return to our 2% target,” Ueda said.
The yen rose to 142.12 per U.S. dollar from 142.81 the previous day, while analysts pointed to growing concerns over U.S. economic stability, rising deficits, and escalating tariff risks as reasons for the dollar’s decline.
“Markets are navigating uncertainty driven by White House volatility and economic headwinds,” said Stephen Innes of SPI Asset Management. “With yields rising and policy swings ongoing, traders need to stay agile.”
Investors now await the Federal Reserve’s meeting minutes for further clues on interest rate policy amid the trade tensions. Additionally, the central bank’s favored inflation gauge is due later this week.
