Stock markets across Asia enjoyed a relief rally on Wednesday after President Trump walked back threats to fire Fed Chair Jerome Powell and suggested lower tariffs on China, sparking a broad-based rebound in equities, the dollar, and bonds.
Trump Eases Fed and Trade Fears
-
No Firing Powell: Trump clarified he has no plans to dismiss Jerome Powell, helping restore belief in the Fed’s independence.
-
Tariff De-Escalation: He reiterated that U.S. duties on China “won’t be anywhere near 145%”, and that he’ll set the terms if Beijing refuses talks.
-
Treasury Support: Earlier, Treasury Secretary Scott Bessent described the trade war as “unsustainable”, forecasting a “slog” toward de-escalation.
Equity and Currency Moves
-
Equities:
-
Japan Nikkei 225: +1.7%
-
South Korea KOSPI: +1.4%
-
Asia ex-Japan (MSCI): +1.9%
-
-
U.S. Futures:
-
S&P 500 Futures: +1.4%
-
Nasdaq 100 Futures: +1.7%
-
-
Key Stocks:
-
Tesla (TSLA): +5% aftermarket on Musk’s pledge to scale back government duties.
-
-
Currencies:
-
USD/JPY: Recovered to 141.77 (off seven-month low).
-
USD/CHF: +0.4% to 0.8218
-
EUR/USD: –0.2% to 1.1399
-
Bond and Safe-Haven Flows
-
Treasuries: Long-dated U.S. Treasury yields fell as Powell’s independence was reaffirmed.
-
Dollar: The greenback recouped losses, reflecting reduced political risk around U.S. monetary policy.
What’s Next for Investors
-
Top Movers & Volume: Track today’s most active stocks and sectors via the
🔗 Market Most Active Market Overview API. -
Economic Calendar: Monitor upcoming Fed speeches, flash PMIs, and tariff announcements with the
🔗 Economics Calendar – Economics Data API. -
Earnings Watch: Stay on top of corporate results that could confirm or challenge the relief rally—see the
🔗 Earnings Calendar API.
With policy volatility ebbing for now, markets are likely to refocus on economic data and corporate earnings. However, any renewed Fed or trade rhetoric from the White House could quickly reverse today’s gains, underscoring the need for agile positioning.
