Title: Trade Tensions Ease, Driving Markets Higher
By Wayne Cole
SYDNEY (Reuters) – Asian stock markets cautiously advanced on Monday as investors awaited news on potential tariffs, while bitcoin surged after being named in a new U.S. cryptocurrency reserve.
U.S. President Donald Trump announced on social media the inclusion of five digital assets in the reserve, including bitcoin, ether, XRP, solana, and cardano. Bitcoin, the largest cryptocurrency by market value, rose 10% to $92,905, while ether, the second-largest, reached $2,443 after a 13% weekend climb.
MSCI’s Asia-Pacific shares outside Japan rose 0.3%, with Japan’s Nikkei up by 1.0%. Chinese blue chips also gained 0.8%, supported by improved Caixin/S&P manufacturing PMI figures for February.
S&P 500 and Nasdaq futures remained flat after a late Friday rally following a week of losses. EUROSTOXX 50, FTSE, and DAX futures saw modest gains.
Investor sentiment improved as European leaders agreed to develop a Ukraine peace plan following a meeting with President Zelenskiy. Concerns about the U.S. economy and potential recession were heightened by soft data and tariff announcements on Canada, Mexico, and China.
The upcoming National People’s Congress in China could bring stimulus measures and possible retaliatory actions against the U.S. Further developments will impact economic activity and consumer prices.
The focus now shifts to the U.S. payrolls report on Friday, which could influence Federal Reserve interest rate decisions. Market expectations of rate cuts have increased, with Fed fund futures implying 69 basis points of easing by year-end.
In Europe, the European Central Bank is expected to lower rates by 25 basis points to 2.50% on Thursday due to weak economic data. Currency markets saw movements, with the euro strengthening on optimism for a Russian-Ukrainian peace deal, while the dollar fluctuated against the Canadian dollar, Mexican peso, and Japanese yen.
The index was slightly down at 107.180, while gold prices saw a 0.5% increase, reaching $2,873 per ounce after a 3% drop last week. Oil prices rebounded slightly after sliding the previous week due to speculation that the U.S. might ease sanctions on Russian output. Additionally, concerns about a potential global trade war impacting energy demand also played a role. Brent futures climbed 76 cents to $73.57 per barrel, and U.S. crude futures rose by 74 cents to $70.50 per barrel. For the latest news on Reuters Markets and Finance, you can visit https://www.reuters.com/finance/markets. To stay updated on the current status of Asian stock markets, please click on the following link: (Reporting by Wayne Cole; Editing by Jamie Freed and Jacqueline Wong).
