Asian Markets Hold Breath as Tariff Deadline Looms—Will Traders Flinch?
Markets hover in nervous equilibrium as the clock ticks down on high-stakes trade negotiations.
The Waiting Game: No major swings as investors brace for potential tariff shockwaves—because nothing says 'stable market' like geopolitical brinkmanship.
Crypto's Silent Rally: While traditional assets freeze, Bitcoin whales are quietly accumulating—because when fiat systems tremble, decentralized assets start flexing.
The Finance Jab: Hedge funds have 'priced in' every scenario except the one that actually happens—as usual.
U.S. Treasuries strengthened ahead of the Fed’s decision
A strong seven‑year note auction eased worries about demand for government debt, pushing the benchmark 10‑year yield down to 4.328%, its lowest since July 3, while the two‑year yield held at 3.873%.
Investors now look to the Bank of Japan, which is expected to keep its policy rate unchanged on Thursday. They will study its statement for signs of when it might resume rate increases, now that a recent trade deal with the United States has cleared the path for tighter policy.
With the August 1 deadline looming, trade talks with several countries were entering final hours, as diplomats warned time was running out to prevent fresh U.S. import duties.
On Tuesday, U.S. and Chinese officials said they WOULD seek to extend their 90‑day tariff truce, though they announced no major progress, leaving both sides awaiting political approval before any further moves.
U.S. officials noted that President TRUMP must decide whether to extend the truce, which expires on August 12, or let tariffs return to triple‑digit levels, as the final choice rests with the White House.
India is also gearing up for steeper U.S. duties, expected to range from 20% to 25% on certain exports, as officials there pause new trade offers ahead of the August 1 cutoff, according to two unnamed government sources.
In another push to avert fresh taxes, three South Korean cabinet ministers travelled to Washington for meetings with Commerce Secretary Lutnick, in what officials described as a last‑ditch effort to secure concessions.
Oil prices ticked up
In energy markets, oil prices ticked up on worries about future supply shortages after President Trump imposed a tight deadline on Russia to end its military actions in Ukraine. Brent crude for September delivery rose by 14 cents, or 0.19%, to settle at $72.65 per barrel.
The spotlight also turns to earnings from U.S. tech giants, with Microsoft and Meta set to report on Wednesday. Analysts say their results will shape sentiment for the rest of the reporting season, following a relatively solid start to quarterly updates.
At the same time, the Singapore dollar gained 0.2% after the Monetary Authority of Singapore opted to keep its policy unchanged.
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