Futures slip, bank earnings ahead, Powell to speak - what’s moving markets
Updates at 05:07 GMT with latest price moves, additional context
Investing.com-- Most Asian stocks reversed some early gains to turn sharply lower on Tuesday, with markets fretting about renewed trade tensions between the U.S. and China, while Japanese shares slumped amid political uncertainty.
Overnight, Wall Street’s major indexes posted strong gains after President Donald Trump struck a softer tone about China. However, much of Asia held back from following suit.
U.S. stock index futures also reversed course to turn modestly lower after edging higher in early Asian hours.
U.S.-China trade tensions heat up again; stocks fall
U.S. President Donald Trump last week threatened to impose 100% tariffs on Chinese imports in response to Beijing’s recent curbs on critical mineral exports, reigniting concerns of another round of tariff escalations between the world’s two largest economies.
In an interview with Fox Business Network, Treasury Secretary Scott Bessent said Trump and Chinese President Xi Jinping were still expected to meet, offering some hope of dialogue.
China’s Ministry of Commerce on Tuesday confirmed that working-level discussions with the U.S. are ongoing this week, while vowing to “fight till the end” against U.S. measures.
The rhetoric prompted investors to pare back risk despite sharp gains on Wall Street overnight.
Hong Kong’s Hang Seng index dropped 0.8% on Tuesday, extending sharp losses.
Mainland Chinese markets edged lower after rising in early trading. The blue-chip Shanghai Shenzhen CSI 300 fell 0.4% and Shanghai Composite ticked lower.
Nikkei slips amid political turmoil; KOSPI retreats after record high
South Korea’s KOSPI fell 0.6% to 3,563.19 points, after jumping as much as 1.3% to 3,646.77, its highest level ever.
Early gains were boosted by Samsung Electronics’ (KS:005930) upbeat third-quarter profit forecast. Samsung shares declined 3% after jumping nearly the same in early trade.
Japan’s Nikkei 225 plunged 3% on Tuesday after returning from a market holiday. The move comes after Sanae Takaichi’s bid to become Japan’s prime minister faced a setback last week as her coalition partner withdrew.
Australian S&P/ASX 200 traded flat after Reserve Bank of Australia minutes showed policymakers remained concerned about inflation pressures and offered little new guidance on the near-term policy path.
Elsewhere, Singapore’s Straits Times Index ticked 0.3% lower. The country’s central bank left monetary policy unchanged on Tuesday, as expected.
Preliminary data showed Singapore’s economy grew more than expected in the third quarter, but the year-on-year growth moderated compared to last quarter, as manufacturing output stagnated.
India’s Nifty 50 were largely unchanged. Shares of LG Electronics India Ltd (NSE:LGEL) soared over 50% in their market debut on Tuesday, after its $1.3 billion initial public offering drew overwhelming investor demand.