SINGAPORE- Asia’s shares followed Wall Street’s positive lead on Tuesday as some investors hoped US President-elect Donald Trump would adopt less aggressive tariffs than previously thought when he takes office.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.03 percent, while Japan’s Nikkei jumped 2 percent, boosted by a rally in technology stocks.
Stocks in Europe, however, looked set for a negative start after Monday’s gain. EUROSTOXX 50 futures fell 0.5 percent, while FTSE futures retreated 0.47 percent.
In the US S&P 500 futures slipped 0.07 percent. Nasdaq futures lost 0.16 percent after the underlying indexes rose on Monday to more than a one-week high.
The Washington Post reported on Monday that Trump aides were exploring tariff plans that would be applied to every country but only cover certain sectors deemed critical to national or economic security, in what would represent a marked softening from promises Trump had made during the 2024 presidential campaign.
The dollar hovered near a one-week low at 108.12nursing some losses from the previous session.
The euro and sterling extended gains from the previous session, each rising more than 0.1 percent to trade at $1.0402 and $1.25395, respectively.
In China, the CSI300 index and Shanghai Composite Index reversed early losses to gain 0.28 percent and 0.17 percent, respectively.
Hong Kong’s Hang Seng Index slumped 1.89 percent.
China’s main stock exchanges asked some large mutual funds to restrict stock selling at the start of the year, three sources familiar with the matter said, as authorities sought to calm markets heading into a tricky period for the world’s second-largest economy.
Inflation figures from the euro zone later on Tuesday will refine the outlook for more rate cuts from the European Central Bank. Markets are pricing in nearly 100 basis points worth of easing in 2025 for now
