Asia Summary and Highlights 27 February
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US Treasury Sec Bessent says he's dedicated to making Trump's tax cuts permanent
The broad risk sentiment is sour
Asia Session
On Thursday's Asia session, we are hearing more remarks on Trump's policy and see both the U.S. Treasury and JGB yields higher, with the latter recouping Wednesday losses and look set to close the Wednesday opening gap. Market seems to have reignited their concern towards the Trump's policy uncertainty. USD/JPY is trading 0.13% higher at 149.28.
The broad risk sentiment is sour on Thursday which seems to be dragged by the uncertainty of Trump's tariff plan. USD is trading broadly higher against majors. Regional equities in China and HK are underperforming U.S. and Japan equities. AUD/USD is trading 0.22% lower at 0.6291, NZD/USD fared worse and is down 0.34% while USD/CAD rose 0.15% as tariff concern continues to shadow the fate of Loonie. Else, EUR/USD is down 0.2% and GBP/USD is down 0.18%.
North American session
Morning trade saw GBP/USD push higher, reaching 1.27, which helped drag EUR/USD above 1.05. Subsequent comments from Trump threatening 25% tariffs on the EU and postponing tariffs on Canada and Mexico to April saw EUR/USD reverse its gains and extended EUR/GBP losses to .8270, while USD/CAD slipped to 1.43 from 1.4350, though unlike the EUR/USD move, the USD/CAD dip was largely reversed.
UST yields slipped and equities gave up earlier gains after Trump’s remarks, and USD/JPY fell below 149, down almost a big figure. Data showed January new home sales down by 10.5% to 657k, but December was revised up to 734k from 698k, and market impact was minimal.