Recent trends indicate a likely increase in equity inflows from foreign banks, driven by a struggling U.S. dollar and escalating tensions between India and Pakistan. The Indian rupee is currently experiencing fluctuations, having opened slightly weaker before briefly reaching its year-to-date high of 84.95. This volatility in the rupee reflects broader market sentiments as investors react to geopolitical developments. — Amala Balakrishner
In Australia, the S&P/ASX 200 index has risen by 0.88%, reaching 8,067.4 as of 1:30 p.m. Australian Eastern Daylight Time, marking its highest level since March 6. The index's increase is broad-based, with significant gains observed in the basic materials, healthcare, and consumer cyclicals sectors. This growth reflects a strong domestic economy and investor confidence in these sectors. — Amala Balakrishner
A recent survey conducted by the China Council for the Promotion of International Trade (CCPIT) reveals that nearly half of Chinese exporters are planning to reduce their exposure to the U.S. market. This decision comes in light of prohibitive tariffs that threaten to disrupt bilateral trade between the world's two largest economies. Out of the 1,100 exporters surveyed, approximately 75% intend to expand their operations into emerging markets to compensate for the loss of U.S. orders. The CCPIT emphasized the need for open dialogue between the U.S. and China, urging Washington to cease the weaponization of tariffs. — Anniek Bao
The Malaysian ringgit has appreciated by 0.62% against the U.S. dollar, trading at 4.3330 as of 10:09 a.m. Singapore time, marking its highest level since November 6, 2024. Other emerging market currencies, including the Australian and Taiwanese dollars, also saw gains, with the Australian dollar rising 0.22% to 0.6442 and the Taiwanese dollar increasing 0.4% to 32.332 against the dollar. Meanwhile, the offshore Chinese yuan strengthened by 0.12% to 7.2751, further indicating positive momentum in the region. — Amala Balakrishner
In South Korea, auto stocks experienced an uptick following announcements from the U.S. administration regarding automotive tariffs. The White House stated it would alleviate some duties on imported auto parts used in U.S. manufacturing, benefiting domestic manufacturers. This policy shift is viewed as a significant win for U.S. trade policy, encouraging investment in America. By 9:50 a.m. local time, Kia Corp had risen 1.35%, while Hyundai Motor climbed 0.58%. — Amala Balakrishner
Oil prices fell on Tuesday, influenced by ongoing trade tensions between the U.S. and China. As of 8:26 a.m. Singapore time, Brent Crude had decreased by 0.25% to $65.61 per barrel, while West Texas Intermediate crude fell 0.31% to $61.86. The U.S.-China trade war continues to dominate investor sentiment, particularly as China remains the world's largest oil importer. The potential for increased tariffs may adversely affect China's fuel and petrochemicals sectors, creating additional market uncertainty. — Amala Balakrishner
Before any potential trade agreements are finalized with India and Japan, large U.S. companies are likely to negotiate individual deals with the White House. This approach may perpetuate a policy patchwork, which could dampen investor sentiment and place pressure on stock and bond prices, according to a report from Morgan Stanley Wealth Management. Chief Investment Officer Lisa Shalett highlighted that without comprehensive tariff rollbacks, market energization is unlikely. Key summits scheduled for June and October could further influence the timeline for these negotiations. — Scott Schnipper
The upcoming earnings reports from mega-cap technology companies are set to be pivotal for the market's direction. Companies such as Meta and Microsoft will report their earnings on Wednesday, while Apple and Amazon are expected to release their results on Thursday. According to Deutsche Bank, these earnings from the so-called "Mag-7" companies will significantly influence market sentiment for the week ahead. — Alex Harring
