Source: Sharecast
Optimism was sparked after US Treasury Secretary Scott Bessent said Washington was “very close to some deals”, following earlier comments from president Donald Trump hinting at possible agreements within the week.
“Global stock markets remained in a tight range on Tuesday, and the dollar regained some of its recent losses against Asian currencies as investors' apprehensions about US tariffs and their potential effects on economic growth resurfaced,” said TickMill market strategy partner Patrick Munnelly.
“These concerns, along with commitments from major oil producers to increase supply, also contributed to crude prices hovering near four-year lows.
“The inconsistent trade policies of US president Donald Trump has triggered notable waves of dollar selling since April, as investors moved away from US assets, resulting in gains for the euro, yen, and the Swiss franc.”
Munnelly said investors were reducing their aggressive selling of the US dollar after the Taiwan dollar experienced a central bank instigated surge alongside other Asian currencies.
“However, this pause keeps attention on the consequences of unpredictable US trade policies.
“The absence of specific information regarding any trade agreements between the US and its counterparts has left investors feeling uncertain, anxious, and eager for positive developments.
“The positive outlook from the previous week, triggered by Beijing's announcement that it was considering Washington's proposal for trade discussions, now feels a distant memory.”
Markets manage gains on hopes for US trade talks
Chinese stocks led gains in the region.
The Shanghai Composite rose 1.13% to 3,316.11, while the Shenzhen Component climbed 1.84% to 10,082.34.
Energy and materials shares surged, with Huadian Liaoning Energy Development, Liaoning SG Automotive Group, and Shanxi Huayang New Material each jumping over 10%.
Hong Kong’s Hang Seng Index added 0.7% to 22,662.71.
Leading the advance were Nongfu Spring, which rose 7.07%, and consumer names Chow Tai Fook Jewellery Group and Sands China, up 5.65% and 5.35% respectively.
Japanese and South Korean markets were closed for public holidays.
In Australia, the S&P/ASX 200 slipped 0.08% to 8,151.40.
Losses were led by Platinum Asset Management, down 7.46%, along with declines in Polynovo and SkyCity Entertainment Group.
The latter also weighed on New Zealand’s S&P/NZX 50, which was nearly flat, down just 0.001% at 12,421.09.
Vista Group International and Pacific Edge also posted sharp losses in Wellington.
Currency markets were mixed after earlier dollar strength, with the greenback last down 0.53% on the yen, trading at JPY 142.94, as it lost 0.27% against the Kiwi to NZD 1.6712.
The dollar was, however, 0.23% stronger on the Aussie, changing hands at AUD 1.5495.
Oil prices rose, as Brent crude futures gained 1.81% on ICE to $61.32 per barrel, and the NYMEX quote for West Texas Intermediate added 1.82% to $58.17.
China’s service sector growth slows, Thailand consumer prices fall
In economic news, China’s services activity expanded at its slowest pace in seven months in April, as concerns over US trade policy weighed on demand.
The Caixin/S&P Global services purchasing managers’ index fell to 50.7 from 51.9 in March, still above the 50-point level that signals expansion.
However, the pace of growth eased as new orders slowed and businesses remained cautious.
Caixin’s Wang Zhe said that both supply and demand lost momentum, while employment declined for a second consecutive month.
In comments quoted by CNBC, he added that cost-cutting measures led to staff reductions, increasing work backlogs for the first time this year.
Meanwhile, Thailand’s consumer prices unexpectedly fell in April, marking the country’s first annual deflation reading since March 2023.
The headline consumer price index dropped 0.22% year on year, compared with no change expected by economists and a 0.84% rise in March.
That decline was driven by falling fuel and food prices.
Core inflation, which excludes volatile items, rose 0.98%, slightly ahead of forecasts.
The data followed recent policy moves by the Bank of Thailand, which cut interest rates for a second straight meeting and revised down its economic growth forecast for 2025.
It said it now expected GDP growth this year to range between 1.3% and 2%, down from an earlier estimate of 2.9%.
Reporting by Josh White for Sharecast.com.