Hong Kong, July 14 (AFP) – Most Asian markets advanced on Monday as investors shrugged off a fresh round of trade war threats from former U.S. President Donald Trump, who over the weekend vowed to impose tariffs of up to 30 percent on the European Union and Mexico.
Markets in Hong Kong, Shanghai, Sydney, Seoul, Singapore, Manila, and Jakarta all posted gains, while Tokyo, Wellington, and Taipei saw slight declines. Meanwhile, Bitcoin surged to a new record high, topping $119,490.
The upbeat performance came in the wake of Trump’s latest outburst on Saturday, in which he cited Mexico’s role in drug trafficking and what he called an unfair trade relationship with the EU as justification for the looming tariffs. His threats follow a slew of recent pronouncements, including proposed levies of 50 percent on Brazilian copper, 35 percent on Canadian goods, and up to 200 percent on pharmaceutical imports.
While many analysts warn that escalating tariffs could deal a significant blow to the global economy, investors appear cautiously hopeful. “There’s still optimism that agreements can be reached before the White House’s August 1 deadline,” said one market analyst. “Markets are showing resilience, although it’s unclear if that’s due to confidence or complacency.”
National Australia Bank’s Taylor Nugent added, “It is hard to say whether the muted market response over the week is best characterised by resilience or complacency. But it is difficult to price the array of headlines purportedly defining where tariffs will sit from August 1 when negotiations are ongoing.”
The proposed tariffs have already shaken months of negotiations between Washington and Brussels. Still, European Commission President Ursula von der Leyen on Sunday delayed retaliatory tariffs on U.S. steel and aluminium as a sign of goodwill, saying the EU remains committed to reaching a deal.
French President Emmanuel Macron also urged for a diplomatic solution, stating the need for an agreement “that reflects the respect that trade partners such as the European Union and the United States owe each other.” However, he warned that the bloc must be prepared with “credible countermeasures” if talks collapse.
EU officials had previously threatened to impose tariffs worth €100 billion ($117 billion) on U.S. goods, including autos and aircraft, if negotiations fail.Meanwhile, analysts noted the irony in Trump targeting Mexico and Canada, two countries he struck a trade deal with during his first term in office.
Traders are also watching developments at the Federal Reserve, as Trump continues to ramp up his criticism of Fed Chair Jerome Powell. Speaking Sunday, the former president said, “I hope he quits,” adding, “He should quit.”
Reports indicate that Trump allies are focusing on Powell’s handling of costly renovations at the Fed’s Washington headquarters as a possible basis for removing him from office—an unprecedented move that strategists say could shake confidence in the central bank’s independence, trigger a spike in U.S. Treasury yields, and cause the dollar to tumble.
Key Figures (as of 0230 GMT) include:
- Tokyo – Nikkei 225: DOWN 0.3% at 39,469.72
- Hong Kong – Hang Seng Index: UP 0.1% at 24,174.34
- Shanghai – Composite: UP 0.4% at 3,524.93
- Euro/dollar: UP at $1.1693 from $1.1690
- Pound/dollar: DOWN at $1.3496 from $1.3497
- Dollar/yen: DOWN at 147.01 yen from 147.38 yen
- Euro/pound: UP at 86.64 pence from 86.59 pence
- West Texas Intermediate: UP 0.1% at $68.52/barrel
- Brent North Sea Crude: UP 0.1% at $70.43/barrel
- New York – Dow: DOWN 0.6% at 44,371.51 (close)
- London – FTSE 100: DOWN 0.4% at 8,941.12 (close)
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