-Asian stocks wavered on Wednesday, while safe-haven gold held near record highs as a nervous world awaited details of U.S. President Donald Trump’s tariff plans and investors fretted about the risks of an intensifying global trade war.
Investor focus in recent weeks has been firmly on the new round of reciprocal levies that the White House is due to announce on Wednesday at 2000 GMT and which are expected to take effect immediately after Trump announces them.
Trump has already imposed tariffs on aluminium, steel and autos, along with increased duties on all goods from China that have rattled markets as fears grow a full-blown trade war could trigger a sharp global economic slowdown.
European futures indicated a subdued open, with STOXX 50 futures down 0.27% and Germany’s DAX futures 0.24% lower.
Asian stocks struggled for direction after a choppy U.S. session. Japan’s Nikkei was last up 0.25% after hitting its lowest level since September earlier in the session. South Korea’s benchmark index was down 0.6%.
On Wall Street, the benchmark S&P 500 and the Nasdaq ended higher after losing ground earlier in the session. The Dow finished a shade lower.
“Nervousness is the dominant sentiment right now,” said Ben Bennett, Asia-Pacific investment strategist at Legal & General Investment Management.
“Investors are hoping for some clarity, and perhaps the start of the deal making phase. But tariffs are already weighing on business sentiment, and this will probably feed through into lower global economic activity in the coming months.”
China’s blue-chip index was up 0.14%, while Hong Kong’s Hang Seng was little changed.
“Trump has called April 2 ‘Liberation Day’ but it is unlikely that investors will truly be liberated from tariff uncertainties,” said Vasu Menon, managing director of investment strategy at OCBC.
“If countries retaliate, Trump could up the ante – this possibility will probably continue to keep investors nervous.”
SOFT DATA
Beyond the tariff news, investors are increasingly worried by signs of rising prices, slowing growth and cracks in the labour market.
Data showed U.S. manufacturing contracted in March after growing for two straight months, while a measure of inflation at the factory gate jumped to the highest level in nearly three years amid rising anxiety over tariffs on imported goods.
A report from the Labour Department also showed on Tuesday U.S. job openings fell in February by 194,000 to 7.568 million as uncertainty surrounding tariffs squelched labour demand.
