Today's Edition
TOKYO (REUTERS)
Stock markets in Asia took in stride the latest twist in US President Donald Trump's tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated.
Shares on Wall Street fell after Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the US, while also postponing their implementation to August 1.
Japan's Nikkei stock gauge opened lower but then turned positive after Trump described that deadline as "firm, but not 100% firm" and said tariffs may be adjusted for some countries.
The Aussie dollar surged after the Reserve Bank of Australia left policy rates unchanged, defying expectations for a cut.
In April, Trump capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. Only two agreements, with Britain and Vietnam, have been reached.
In June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war.
Tariffs on Japan and South Korea are now due to go up to 25% on August 1.
Japanese Prime Minister, Shigeru Ishiba, called the hike deeply regrettable and said his nation would continue negotiations with the US.
Thailand's finance minister, Pichai Chunhavajira, said his country is preparing a back-up plan to deal with the 36% tariff imposed on its exports.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
The EU still aims to reach a trade deal by Wednesday after European Commission President, Ursula von der Leyen, and Trump had a "good exchange," a commission spokesperson said.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%. Japan's Nikkei stock index added 0.4%, while South Korea's KOSPI jumped 1.5%.
The dollar appreciated 0.1% to 145.88 yen, after touching a two-week high. The euro rose 0.3% to $1.1744. The Aussie dollar rose 0.8% to $0.6541.
The RBA left its cash rate steady at 3.85%, a shock for markets that had confidently priced in a cut, saying the majority of the board wanted to wait for more information to confirm inflation was slowing.
US crude dipped 0.5% to $67.61 a barrel after surging nearly 2% on Monday. Spot gold slid 0.2%.
Pan-region Euro Stoxx 50 futures were down 0.2%, German DAX futures were also down 0.2%, and FTSE futures slid 0.4%.
