TOKYO — Shares in Asia crept higher and the US dollar languished ahead of the European Central Bank offering its policy outlook for a tumultuous global economy.
The dollar slid in the previous session after weak US jobs and services data, with more weighty employment data due on Friday. Damage to the US economy is becoming more apparent from President Donald Trump’s erratic tariff action, while bilateral deals remain unrealized.
Canada prepared possible reprisals against the imposition of new US metals tariffs while the European Union reported progress in trade talks with Washington. Against that backdrop, market watchers considered the ECB almost certain to cut policy interest rates so will pay greater attention to what bank President Christine Lagarde signals about future decisions.
“There’s uncertainty about the guidance the central bank will deliver given the murky outlook for US trade policy and global growth,” said Kyle Rodda, a senior financial market analyst at Capital.com. “A failure to deliver sufficiently dovish guidance could upset the equity markets as well as give the euro upward trend additional momentum.”
Trump’s doubling of tariffs on steel and aluminum imports became effective on Wednesday, hitting Canada and Mexico in particular. The same day, his administration sought “best offers” from trading partners to stop other import levies taking effect in July.
Japan is sending key trade negotiator Ryosei Akazawa to the US on Thursday for another round of talks. Germany’s new chancellor, Friedrich Merz, is also due to head to Washington.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7 percent in early trade, whereas Japan’s Nikkei stock index slid 0.2 percent.
