SINGAPORE – Markets in the Asia-Pacific region were poised to remain in a positive territory, as investors prepared for a possible meltdown in US-China trade relations as US President Joe Biden proposed tariff cuts.
In Japan, Nikkei futures traded at 26,045 in Chicago and Osaka futures at 26,030. The Nikkei 225 last closed at 27,001.52.
A high open direction for futures Australian stocks. The SPI futures contract was at 7,172, against the S&P / ASX 200’s last close of 7,148.90.
In next day’s economic data, Japan is ready to report data on its manufacturing activity for the month of May.
With consumer prices heating up, the White House said last month it was looking at how these tariffs have contributed to inflation.
The tariffs took effect in 2018 when the Trump administration imposed tariffs on billions of dollars worth of Chinese goods and Beijing retaliated with similar punitive measures, leading to protracted trade wars on both sides.
“Markets have taken the news as an indication of a possible meltdown in US-China trade tensions, although this is not the first time that tariffs have been reduced,” wrote Taylor Nujant, an economist at the National Bank of Australia. “While tariff cuts will help soften US inflation on the margins, the report suggests that administration officials are concerned about softening China ahead of the November congressional elections. “
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 102.076 – continuing to slide above the 102.9 level at the start of the week.
The Japanese yen traded at 127.76 per dollar, as it strengthened slightly from the previous close of 127.8. The Australian dollar was $ 0.7087, up from about $ 0.704 earlier.