Asian markets swing ahead of ‘Liberation Day’ uncertainty

Asian markets fluctuated on Monday as investors braced for potential US tariffs. The White House plans to impose these measures on key trading partners starting April 2. Many fear the tariffs could damage the global economy.

A report suggesting President Joe Biden might adopt a more targeted tariff approach did little to calm nerves. Since taking office, Biden has unsettled markets by threatening heavy tariffs on goods like steel and automobiles.

Next Wednesday, dubbed “Liberation Day” by Biden, has become a major focus. On this day, the administration will unveil new trade measures. Chris Weston of Pepperstone said, “Anticipation ahead of April 2 and the wave of tariff announcements will shape market movements and liquidity this week.”

Market players remain cautious. Weston compared the current tension to “storm clouds gathering over capital markets,” as traders wonder if they should prepare for upcoming volatility.

Global Concerns Rise

The Federal Reserve recently warned of increasing economic uncertainty. Japan and Britain’s central banks also expressed concerns about US trade policies. Chinese Premier Li Qiang, addressing top corporate leaders like Apple and Qualcomm, warned that Beijing was preparing for “shocks that exceed expectations.”

Australian Treasurer Jim Chalmers called the US moves “seismic” but “not surprising.” Bloomberg reported that Biden might soften the impact by targeting specific countries more harshly while easing restrictions on others. On Friday, Biden hinted at some flexibility, saying, “There’ll be adjustments.”

Despite these reassurances, Asian markets struggled to find direction. Tokyo remained flat, while Shanghai, Singapore, and Taipei posted small gains. Hong Kong, Sydney, Seoul, and Wellington dipped slightly.

Market Performance

• Tokyo (Nikkei 225): Flat at 37,676.97
• Hong Kong (Hang Seng): Down 0.1% at 23,660.67
• Shanghai (Composite): Up 0.1% at 3,369.57

Currency markets also reacted to the uncertainty. The euro rose to $1.0831 against the dollar, while the yen weakened to 149.75 per dollar.

Commodities showed mixed movements. Gold held steady around $3,025 after hitting a record $3,057 last week due to rising demand for safe-haven assets. West Texas Intermediate oil fell 0.2% to $68.13 per barrel, while Brent crude slipped 0.3% to $71.97 per barrel.

In global equity markets, the Dow Jones in New York rose 0.1% to 41,985.35 points. Meanwhile, London’s FTSE 100 dropped 0.6% to 8,646.79 points.

Outlook Remains Uncertain

As the April 2 deadline approaches, investors are closely watching Biden’s tariff strategy. Despite hints of moderation, concerns over trade conflicts and global economic fallout continue to weigh on market sentiment.