Asian equities advanced Friday as markets reacted positively to signs reciprocal US tariffs may be weeks from coming into effect, raising the prospect for negotiations that could make them less punitive.
A benchmark of Asian shares gained for a third day, while US equity index futures also ticked higher. That was after the S&P 500 climbed toward a record on Thursday, helping propel a measure of global shares to an all-time high. Contracts for European futures traded lower.
The South Korean won, and the yen strengthened, while a gauge of the dollar held near a two-month low.
The support for equities suggests investors have focused on speculation the talks may blunt the impact of the tariffs, echoing the response to delays on those levelled at Canada and Mexico earlier this month.
The Bloomberg Dollar Spot Index has dropped about 2.5% from February’s high as investors wind back bets that Trump is determined to ramp up global tariffs as part of his “America First” policy.
“The fact this is a slow burn approach from Trump, with the chance many of the tariffs will be extinguished, is supporting market sentiment,” said Kyle Rodda, senior market analyst at Capital.com.
