Asia Shares Rise as Markets Attempt a Rebound

Asia Shares Rise as Markets Attempt a Rebound

Asian shares rose on Friday, attempting a recovery after a sharp global selloff. Gold reached a record high as escalating trade tensions led investors to seek safe-haven assets.

U.S. Government Shutdown Aversion Boosts Sentiment

Relief over the likely aversion of a U.S. government shutdown supported stocks in early Asian trade. Senate Democrat Chuck Schumer announced his support for a Republican stopgap funding bill, increasing the likelihood of passage.

U.S. stock futures responded positively:

• Nasdaq up 0.87%
• S&P 500 futures advancing 0.7%
• EUROSTOXX 50 futures up 0.04%
• FTSE futures gaining 0.1%

Alvin Tan, head of Asia FX strategy at RBC Capital Markets, noted that “this news from Congress is positive for market sentiment.”

Asian Markets See Mixed Gains

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.2% higher but was still on track for a weekly loss of more than 2% due to trade disputes.

Japan’s Nikkei reversed early losses to rise 0.12%, while Hong Kong’s Hang Seng Index gained 1% but was still set for a 2.3% weekly decline. China’s CSI300 blue-chip index advanced 1.4% and was poised for a 0.6% weekly gain.

Trump Threatens New Tariffs on European Imports

In the latest escalation of trade tensions, U.S. President Donald Trump announced plans to impose 200% duties on European wine and spirits if the EU does not remove retaliatory surcharges on American whiskey and other products set to take effect next month.

Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho, commented, “Trump is making it very clear that if anyone were to retaliate, his counter-escalation will be even sharper.”

Wall Street Correction and Investor Caution

Thursday’s selloff confirmed that the S&P 500 entered a correction, following the Nasdaq’s confirmation a week prior. Michael Strobaek, global chief investment officer at Lombard Odier, remarked, “Trump 2.0 is nothing like Trump 1.0. This time, the president seems prepared to let U.S. markets and the economy suffer while he implements his ‘America First’ goals.”

Gold Hits Record High Amid Safe-Haven Demand

As trade tensions escalated, gold reached a record high of $2,990.09 per ounce on Friday, set to gain 2.6% for the week.

Currency Market and Dollar Movement

The dollar regained some ground due to safe-haven flows but remained under pressure due to recession fears. The euro traded 0.1% lower at $1.0841, while the British pound fell 0.05% to $1.2944.

Germany’s fiscal reset plan, involving a €500 billion fund for infrastructure and economic revival, provided support to the euro. Germany’s parliament is set to vote on the measures on March 18, before a new parliament forms on March 25.

Central Bank Meetings and Rate Speculations

Next week, multiple central banks, including the U.S. Federal Reserve and the Bank of Japan (BOJ), will hold meetings. Investors are keenly watching for guidance on interest rate trends amid trade policy uncertainties.

Mizuho’s Varathan predicted that “rates will go lower; it’s just a question of timing. The tariffs will be an inconvenience, not an impediment to Fed cuts.”

The dollar was last up 0.3% against the yen at 148.25 but was set for a slight weekly loss as expectations for BOJ rate hikes increased.

Oil Prices Rebound Slightly

After falling in the previous session, oil prices edged higher:

• Brent futures rose 0.54% to $70.26 per barrel
• U.S. West Texas Intermediate crude gained 0.6% to $66.96 per barrel

“Asia Shares Rise as Markets Attempt a Rebound” “Asia Shares Rise as Markets Attempt a Rebound” “Asia Shares Rise as Markets Attempt a Rebound” “Asia Shares Rise as Markets Attempt a Rebound” “Asia Shares Rise as Markets Attempt a Rebound” “Asia Shares Rise as Markets Attempt a Rebound”