TOKYO, April 1 (Reuters) – Asian equities experienced a rise on Tuesday following gains on Wall Street overnight. Meanwhile, gold reached an all-time high, and Treasury yields declined as markets prepared for details of U.S. President Donald Trump’s reciprocal tariffs.
The Japanese yen strengthened due to increased demand for traditional safe-haven assets. At the same time, the risk-sensitive Australian dollar rebounded after the Reserve Bank of Australia maintained steady interest rates, as anticipated, but highlighted significant global uncertainty.
Regional stocks found some relief on the first day of April after being impacted in March by concerns that Trump’s trade war might lead to stagflation or even a U.S. recession. Investors are anxiously awaiting April 2, labeled by Trump as ‘Liberation Day,’ when he plans to reveal a substantial reciprocal tariff strategy.
Pan-European STOXX 50 futures increased by 0.35%. Analyst Tony Sycamore at IG noted that part of the rebound in key Wall Street indices could be attributed to month-end and quarter-end rebalancing flows, as well as short covering ahead of Trump’s announcement, amid considerable uncertainty about what comes next.
Gold surged to a record high for the fourth consecutive session, reaching $3,148.88 per ounce. Analyst Kyle Rodda at Capital.com stated that investors are increasing their allocation to gold due to concerns over the Trump administration’s trade policy threatening the dollar’s special reserve status.
Demand for the safety of Treasuries lowered yields on Tuesday, with benchmark 10-year notes sinking approximately 5 basis points to 4.1920%. This put pressure on the dollar, which slipped 0.08% to 149.85 yen. The euro remained steady at $1.0813.
Oil prices rose, building on Monday’s 2% surge. Brent gained 0.23% to $74.94 a barrel, while U.S. West Texas Intermediate crude advanced 0.22% to $71.64.
— new from Reuters