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Asian Markets Slip as U.S. Tariff Delay Lifts Futures, Dollar Faces Fifth Monthly Loss

Asian Markets Slip as U.S. Tariff Delay Lifts Futures, Dollar Faces Fifth Monthly Loss. Source: Image by Gerd Altmann from Pixabay

Asian shares edged lower on Tuesday, while U.S. stock futures rose after President Donald Trump postponed a planned 50% tariff on EU imports, extending the deadline to July 9. The delay boosted risk sentiment, driving Nasdaq futures up 1.26%, S&P 500 futures up 1.11%, and FTSE futures up 0.94%.

Japan’s Nikkei slipped 0.15%, and yields on super-long Japanese government bonds fell from recent highs. MSCI’s Asia-Pacific index excluding Japan dipped 0.17%, while China’s CSI300 dropped 0.06%, the Shanghai Composite was flat, and Hong Kong’s Hang Seng Index declined 0.1%.

Markets were thin following Monday’s U.S. and UK holidays. Investors are now eyeing Nvidia’s Q1 earnings report on Wednesday, where the AI chipmaker is expected to post a 65.9% revenue jump. Month-end portfolio rebalancing and U.S. macroeconomic data—especially Friday’s core PCE price index—also remain in focus, alongside several upcoming speeches from Federal Reserve officials.

In currency markets, the U.S. dollar struggled and was on track for a fifth consecutive monthly loss—its longest losing streak since 2017. The euro traded near a one-month high at $1.14035, and the yen strengthened to 142.18 per dollar. Analysts attribute the dollar’s weakness to erratic U.S. trade policy, ballooning fiscal deficits, and waning safe-haven appeal.

Gold prices, benefiting from dollar weakness, reached record levels earlier this year but slipped 0.28% to $3,332.91 per ounce.

Meanwhile, oil prices dipped slightly ahead of the upcoming OPEC+ meeting. Brent crude futures eased 0.1% to $64.67 a barrel, while U.S. WTI crude dropped 0.16% to $61.43.

Investor attention is also on the Bank of Japan’s two-day conference in Tokyo, where global central bankers are discussing sluggish growth and persistent inflation.

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