SINGAPORE, July 10 — Asian stocks rose slightly today, riding on optimism from Nvidia’s brief rise to a world-record US$4 trillion (RM17 trillion) valuation and as investors largely shrugged off United States President Donald Trump’s latest tariff salvos.
US copper futures widened their premium to the London benchmark overnight after Trump announced plans to impose a 50 per cent tariff on copper. He yesterday said the levies would come into effect on August 1.
Trump also turned his trade ire against Brazil on Wednesday as he threatened a punitive 50 per cent tariff on exports to the US and issued tariff notices to seven minor trading partners.
The latest moves did little to rattle markets, leaving MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.2 per cent.
The Nikkei fell 0.56 per cent, while China’s CSI300 blue-chip index rose 0.2 per cent and Hong Kong’s Hang Seng Index added 0.1 per cent.
Eurostoxx 50 futures gained 0.18 per cent and FTSE futures advanced 0.33 per cent.
Artificial intelligence chip designer Nvidia yesterday became the world’s first company to hit a US$4 trillion market value, as it solidified its position as one of Wall Street’s most favoured stocks.
US stock futures eased slightly in Asia today, with Nasdaq futures and S&P 500 futures both down about 0.2 per cent each, after both indexes closed higher in the cash session overnight.
The market reaction to Trump’s tariff developments this week has been much less severe than the post “Liberation Day” selloff in April, with Jeff Ng, SMBC’s head of Asia macro strategy, saying investors have grown somewhat “numb” to the ever-changing situation.
“They know that there is still room for negotiation. A lot of these announcements, they start off with eye-catching numbers, but they are not totally final, and they are still subject to changes. Even if they are implemented, they could also be reversed in the coming few months to year,” he said.
Also keeping stocks supported were expectations of Federal Reserve rate cuts later this year.
Minutes released yesterday showed “most participants” at the Fed’s meeting last month anticipated rate cuts would be appropriate later this year, with any price shock from tariffs expected to be “temporary or modest”.
“Right now, markets are not pricing in a high chance of a full-blown recession at this stage, given that the labour market continues to be quite resilient, but they know that there’s a lot of pressure to push policy rates lower, so that could lower the opportunity cost of holding equities,” Ng said.
Dollar eases
The dollar was on the back foot today, falling 0.4 per cent against the yen to 145.79 after a sharp rise earlier this week when Trump slapped Japan with 25 per cent tariffs.
The euro was up 0.17 per cent to US$1.1742 and sterling gained 0.11 per cent to US$1.3605.
An exception was the Brazilian real, which languished near a one-month low at 5.5826 per dollar owing to Trump’s tariff threat on Latin America’s largest economy.
“Despite the S&P 500’s impressive rally, the US dollar continues to retreat, underscoring a shifting global macro narrative,” said Julia Wang, global market strategist at JP Morgan Private Bank.
“We believe the greenback remains 5 to 15 per cent overvalued and expect continued weakness as cyclical convergence and capital reallocation trends play out.”
In cryptocurrencies, bitcoin hovered near a record high and was last at US$111,234.63, while ether was up 1.3 per cent to US$2,775.54.
“We’re seeing our clients take a more measured approach, making strategic allocations into cryptocurrencies with real utility instead of chasing short-term moves. Bitcoin remains the top pick on our platform,” said Gracie Lin, OKX’s Singapore chief executive officer.
Elsewhere, oil prices fell today, with Brent crude futures down 0.16 per cent to US$70.08 per barrel, while US crude lost 0.22 per cent to US$68.23 a barrel.
Spot gold rose 0.3 per cent to US$3,322.69 an ounce.
— Reuters
