Currency movements were not limited to the yen. The Singapore dollar firmed to 1.271 per U.S. dollar, its strongest level in more than a decade, and the U.S. Dollar Index weakened 0.52 percent to 90.087. With the greenback under pressure, investors sought traditional havens. Spot gold prices climbed above $5,000 per ounce, marking a record high as geopolitical uncertainties and a softer dollar encouraged flows into precious metals. Similar safe-haven demand supported government bond markets in several Asia-Pacific economies.
Trade policy remained a central source of uncertainty. Over the weekend, Canadian Prime Minister Mark Carney stated that Canada has no intention of pursuing a free-trade agreement with China. His comments followed a warning from former U.S. president Donald Trump, who threatened 100 percent tariffs on Canadian goods if Ottawa signed such a pact. Carney emphasized that Canada’s commitments under the Canada-United States-Mexico Agreement prohibit negotiating free-trade deals with so-called non-market economies without prior notification to partners. The statements underscored lingering trade-related tensions that have periodically rattled global markets since 2018.
Monday’s cautious mood extended into U.S. equity futures. Contracts linked to the Dow Jones Industrial Average were down 131 points, or 0.27 percent, while S&P 500 futures slipped 0.33 percent and Nasdaq-100 futures declined 0.48 percent. Traders are bracing for a heavy slate of earnings reports along with a Federal Open Market Committee meeting that concludes Wednesday. The central bank is widely expected to leave interest rates unchanged, but market participants will scrutinize Chair Jerome Powell’s remarks for guidance on the policy outlook.
Major U.S. indices finished last Friday on a mixed note. The Nasdaq Composite rose 0.28 percent to 23,501.24, aided by easing geopolitical worries that benefited growth shares. The Dow Jones Industrial Average fell 285.30 points, or 0.58 percent, ending at 49,098.71 after a roughly 4 percent drop in Goldman Sachs stock weighed on the blue-chip gauge. The S&P 500 managed a marginal 0.03 percent increase to 6,915.61.
While equity moves captured much attention, several strategists highlighted that developments in foreign-exchange markets could play an outsized role in shaping risk sentiment. A weaker dollar typically eases financial conditions for emerging economies and commodity producers, potentially supporting regional equities. Conversely, abrupt yen strength can prompt Japanese officials to step in, creating knock-on effects for global currency markets. The Bank of Japan has not confirmed any direct action, but authorities last intervened in late 2022, and market watchers have been alert for similar measures.
Elsewhere in commodities, crude oil prices were little changed in early Asian trading, reflecting a balance between supply concerns tied to Middle East tensions and demand questions linked to slower-than-expected global growth. Industrial metals showed limited movement ahead of Chinese manufacturing data due later in the week.
Market participants will continue monitoring corporate earnings for clues about consumer demand and margin pressures, particularly in the technology and financial sectors. Additionally, April inflation readings from several Asian economies, combined with the outcome of the Federal Reserve meeting, could influence expectations for future policy shifts across the region.
Crédito da imagem: Maydays | Moment | Getty Images
