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
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MSCI Asia ex-Japan: –0.72%
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Nikkei 225: +0.4%
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Hang Seng: –1.0%
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CSI 300: +0.06%
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U.S. Futures: S&P 500 Futures –0.23%, Nasdaq 100 Futures –0.32%
Policy Whiplash Weighs on Sentiment
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Fed Uncertainty
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Trump’s week-long attack on Fed Chair Powell, followed by a retraction, has left markets unsure of U.S. monetary policy’s independence.
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Treasury Secretary Bessent echoed this, saying any tariff cuts would not be unilateral—a far cry from headlines suggesting immediate de-escalation.
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Tariff Talk Turmoil
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The White House reportedly eyed cutting China tariffs to 50–60%, but Bessent and White House spokespeople later clarified no standalone offer exists.
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Investors remain wary that any deal requires Beijing to make the first move—something China has signaled it won’t do.
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Regional Highlights
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Japan
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Tariff negotiator Ryosei Akazawa prepares for U.S. visit (April 30) to resume talks—boosting automakers Toyota (+5%) and Honda (+2%).
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South Korea
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KOSPI underperformed after Q1 GDP unexpectedly contracted, offsetting strong SK Hynix (NVDA supplier) earnings.
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China
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CSI 300 flat; PBoC governor reiterated support for multilateral trade, signalling Beijing’s resistance to U.S. pressure.
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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 API
from Financial Modeling Prep.
What’s Next
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Flash PMIs (Wed): Early barometer of global growth under trade stress.
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Durable Goods Orders (Thu): Gauge of capex ahead of tariffs.
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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.
