Global markets displayed mixed performances on Tuesday as investors weighed upcoming corporate earnings alongside the rising threat of new U.S tariffs, with President Donald Trump’s August 1 deadline for new trade measures looming large.
In Asia, stock indexes moved cautiously. Japan’s Nikkei 225 edged up 0.2% to 39,892.81, buoyed by Prime Minister Shigeru Ishiba’s announcement that he would remain in office despite his party’s poor performance in weekend elections.
The yen gained strength on the news, reaching 147.08 against the dollar before retreating slightly from Friday’s 148.80 level.
Elsewhere, Hong Kong’s Hang Seng Index rose 0.3% to 25,074.15, continuing its upward trend driven by gains in Chinese tech stocks and a steady flow of capital from mainland investors.
Shanghai, Sydney, and Taipei also saw modest gains, while markets in Singapore, Seoul, Wellington, and Manila recorded losses.
Investors remained cautiously optimistic after a strong session on Wall Street.
The S&P 500 closed above 6,300 points for the first time, and the Nasdaq hit another record high.
The rally was driven in part by expectations that U.S. trading partners will reach agreements to avert steep tariffs that Trump has threatened.
So far, only three trade deals have been finalized. White House Press Secretary Karoline Leavitt hinted that more agreements could be secured before the deadline but warned that the president may also introduce new tariffs if progress stalls.
Trump’s earlier tariff threats on April 2 had shaken global markets, but subsequent delays and investor skepticism have led to more muted responses this time.
Analysts believe markets are betting that the president may soften his stance at the last minute.
However, some experts caution against complacency. Stephen Innes of SPI Asset Management warned that investors might be blindsided next week:
“The new tariff regime isn’t being priced full stop. Markets have seen this movie before: tough talk, last-minute extensions, and deal-making in overtime. But this time, Trump isn’t bluffing. He’s already posted ‘No extensions will be granted’,” Innes wrote.
“The new rates 30% on the EU, 35% on Canada, 50% on Brazil — are politically loaded and economically radioactive. If they go live, there’s no soft landing.”
In Japan, political instability also weighed on sentiment. Despite losing his ruling coalition’s majority in Sunday’s lower house election after a similar setback in the upper house Prime Minister Ishiba refused to step down. Analysts, however, say his hold on power is fragile.
Christy Tan of Franklin Templeton Institute noted:
“Ishiba now faces heightened political headwinds, including pressure over inflation, taxes, and U.S. trade talks.”
Investors are also closely watching quarterly earnings from several major global firms this week. Tesla, Alphabet (Google’s parent company), General Motors, Intel, and Coca-Cola are among those set to release results.
While performance metrics will be key, market watchers are more focused on forward guidance amid the ongoing trade uncertainty.
Key Market Indicators (as of 02:30 GMT):
Tokyo (Nikkei 225): +0.2% at 39,892.81
Hong Kong (Hang Seng): +0.3% at 25,074.15
Shanghai Composite: +0.1% at 3,563.59
USD/JPY: 147.50 (up from 147.42 Monday)
EUR/USD: $1.1690 (up from $1.1688)
GBP/USD: $1.3484 (down from $1.3485)
EUR/GBP: 86.69 pence (up from 86.68 pence)
WTI Crude: –0.7% at $66.70 per barrel
Brent Crude: –0.9% at $68.62 per barrel
Dow Jones (NY): Flat at 44,323.07
FTSE 100 (London): +0.2% at 9,012.99
