Asian markets rise as US dollar slips amid trade policy uncertainty
Asian shares edged higher on Tuesday while the US dollar slipped to a six-week low, as investors weighed mixed signals on the future of US trade policy.
White House Press Secretary Karoline Leavitt said US presidential candidate Donald Trump and Chinese President Xi Jinping are likely to speak this week, following Trump’s recent accusation that Beijing breached an agreement on rolling back tariffs and trade restrictions. Markets are expected to watch the conversation closely as trade tensions between the world’s two largest economies persist.
Data released Monday revealed that US manufacturing activity contracted for a third consecutive month in May, with suppliers facing the longest delivery delays in nearly three years—underscoring the impact of tariffs. In China, a private-sector survey showed factory activity shrank for the first time in eight months, suggesting US trade measures are beginning to weigh on Chinese manufacturers.
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed early declines to trade 0.4% higher, while Japan’s Nikkei edged up 0.1%.
On Wall Street, the Dow Jones Industrial Average rose 0.1% to 42,305.48. The S&P 500 gained 0.4% to close at 5,935.94, and the Nasdaq advanced 0.7% to 19,242.61.
In bond markets, the yield on 10-year US Treasuries ticked up to 4.450% from 4.425% late Sunday.
