Asia-Pacific markets showed muted activity on Tuesday, mirroring a downturn on Wall Street following U.S. President Donald Trump’s intensified critique of Federal Reserve Chairman Jerome Powell, while tensions on trade war have yet to subside.
Japan’s Nikkei 225 traded mostly unchanged at 34,255.71 points. China’s Shanghai Composite rose 0.24%, while Hong Kong’s Hang Seng Index dipped 0.60%. South Korea’s Kospi saw modest gains of 0.1%, while Australia’s S&P/ASX 200 declined by 0.06%.
The overnight session in the United States witnessed significant losses in major indices. The Dow Jones Industrial Average plummeted by 971.82 points or 2.48% to finish at 38,170.41. The S&P 500 slid by 2.36%, concluding at 5,158.20, and the Nasdaq Composite dropped by 2.55%, closing at 15,870.90.
Trump continued to pressure the Fed’s chairman for an interest rate cut.
″‘Preemptive Cuts’ in Interest Rates are being called for by many,” wrote Trump on his social media platform. He reiterated that there is virtually no inflation in the U.S., while the cost of energy and other prices are on a decline.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW”.
Oil markets experienced a decline of over 2% on Monday amid developments in U.S.-Iran discussions, with lingering concerns over tariffs potentially stifling fuel demand. Brent crude futures decreased by $1.70 or 2.5%, to settle at $66.26 a barrel following a 3.2% rise the previous Thursday. The Good Friday holiday prompted last week’s earlier market close.
Gold surged past $3,400 on Monday, setting a new all-time high as Trump’s threats towards Federal Reserve independence and tariff policies stirred investor apprehension regarding the U.S. economic outlook.
