Markets across Asia drifted on Thursday, paring earlier gains as investors grappled with the U.S. administration's mixed signals on tariffs and Federal Reserve leadership. A rebound in the dollar also lost steam, underpinning a cautious tone.

Market Overview

• MSCI Asia ex-Japan: -0.72%

• Nikkei 225: +0.4%

• Hang Seng: -1.0%

• CSI 300: +0.06%

• U.S. Futures: S&P 500 Futures -0.23%, Nasdaq 100 Futures -0.32%

Policy Whiplash Weighs on Sentiment

• Fed Uncertainty

  • Trump's week-long attack on Fed Chair Powell, followed by a retraction, has left markets unsure of U.S. monetary policy's independence.

  • Treasury Secretary Bessent echoed this, saying any tariff cuts would not be unilateral—a far cry from headlines suggesting immediate de-escalation.

• Tariff Talk Turmoil

  • The White House reportedly eyed cutting China tariffs to 50-60%, but Bessent and White House spokespeople later clarified no standalone offer exists.

  • Investors remain wary that any deal requires Beijing to make the first move—something China has signaled it won't do.

Regional Highlights

• Japan

  • Tariff negotiator Ryosei Akazawa prepares for U.S. visit (April 30) to resume talks—boosting automakers Toyota (+5%) and Honda (+2%).

• South Korea

  • KOSPI underperformed after Q1 GDP unexpectedly contracted, offsetting strong SK Hynix (NVDA supplier) earnings.

• China

  • CSI 300 flat; PBoC governor reiterated support for multilateral trade, signalling Beijing's resistance to U.S. pressure.

FX & Bond Reaction

A firmer dollar and volatile yield moves reflected reduced confidence in policy predictability. Safe-haven flows into JPY were balanced by dollar strength.

For live currency pair updates, see the
🔗 Daily Forex Rates API
from Financial Modeling Prep.

What's Next

1. Flash PMIs (Wed): Early barometer of global growth under trade stress.

2. Durable Goods Orders (Thu): Gauge of capex ahead of tariffs.

3. Trade Talks Updates: Any clarity on U.S.-China or U.S.-Japan negotiations will drive market direction.

Investors should brace for continued choppiness as policy rhetoric remains unpredictable. Defensive positioning and real-time monitoring of trade and central bank signals will be key to navigating this environment.