HONG KONG, China – Asian markets mostly rose Tuesday, clawing back some of the hefty losses suffered in recent weeks, though sentiment remains sluggish and gold hit another record high as Donald Trump prepares to unveil sweeping tariffs.
Investors have been rushing to position themselves for the US president’s “Liberation Day” on Wednesday, when he warned he will impose levies on “all countries” for what he has said is years of them ripping off Americans.
Trump said Monday he would be “very kind” when he unveils the tariffs but with little detail on who will be hit with what, trading floors are awash with uncertainty, hammering equities across the board and stoking recession fears.
READ: Trump’s ‘Liberation Day’ wallops stock markets worldwide
Trump’s threat last week to impose 25 percent tariffs on car and parts imports added to the dour mood, and some warn the volatility will likely continue as governments react to the measures by either appeasing the Republican or retaliating in kind.
On Tuesday, Vietnam said it would slash duties on a range of goods including cars, liquefied gas and some agricultural products.
“Some on Wall Street are already talking about how ‘April 2’ may very well be lighter-than-feared, producing a snap-back rally in risk assets,” said Jose Torres, a senior economist at Interactive Brokers.
“But others worry that this economy can’t handle a stress test of this magnitude and point to households increasingly unable to sustain expenditure patterns in light of mounting headwinds.”
After a run of big losses across markets, Asia staged a mild recovery Tuesday.
Tokyo, which has borne the brunt of the pain owing to hefty selling of car giants including Toyota and Honda, edged up along with Hong Kong, Shanghai, Sydney, Seoul and Taipei.
Singapore and Wellington dipped.
But the rebound was as fragile as that seen in New York, where the S&P 500 rose on Monday but closed its worst quarter since 2022.
With uncertainty reigning, gold — a go-to safe haven in times of turmoil — chalked up another record, hitting $3,138.26.
That came after Wall Street’s so-called VIX “fear index” rose for a fourth successive day.
“We continue to think that markets including Asia forex are underpricing the magnitude of these tariffs, and our North Star is for Trump to be more aggressive than many think possible in a significant structural change to the post-World War II global order, beyond the day-to-day policy whiplash and uncertainty,” said Michael Wan at MUFG.
