Chinese stocks led Asia higher while the dollar weakened on news that members of President-elect Donald Trump’s economic team discussed a gradual approach to ramping up tariffs.
A dollar gauge fell for the first day in six, with New Zealand’s currency leading gains among the Group-of-10 peers. Shares in China and Hong Kong rose, with those in Sydney and Taiwan also climbing.
US contracts climbed, extending the slight gains seen in the S&P 500 on Monday.
The possibility of gradually-implemented US tariffs is stirring a note of optimism, given that Trump’s threats to impose levies of as much as 60% on Chinese goods have loomed over markets in Asia.
Such a plan may ease inflation concerns and roll back higher Treasury yields as the Federal Reserve gets room to reduce interest rates. Traders also will monitor US inflation data this week that could provide more clues on the Fed’s rate trajectory.
