Asia Summary and Highlights 10 April

Asia Session

After the euphoria on Wednesday, we are seeing partial retracement of moves in U.S. equities and USD/JPY. There has been little update about Trump's tariff fiasco but overall market participants seems to stay optimistic. JGB yields opened higher while U.S. Treasury yields headed the other way. USD/JPY is trading 0.69% lower at 146.68.

The risk sentiment remains choppy on Thursday as market participants take a break from their initial euphoria on tariff postponing. U.S. major equity indexes are trading lower while Chinese equity indexes retreats from opening high. Nikkei jumps by almost ten percent and HSI stays in the green.  The AUD/USD is trading 0.51% higher at 0.6186 with private inflation expectation rose to 4.2% y/y, NZD/USD is trading 0.91% higher at 0.5659 while USD/CAD slips 0.07%. Else, EUR/USD is up 0.34% and GBP/USD up 0.26%.

North American session

The morning was generally quiet with equities, bonds and FX all struggling for direction. The early afternoon saw a healthy 10-year auction lift risk appetite. The news of the day followed, Trump reducing reciprocal tariffs to 10% across the board for a 90-day pause while extending the rate to 125% for China. This saw equities surging.  

USD/JPY saw the strongest response, surging from 145 to 148. EUR/USD slipped below 1.10, contrasting a rise in GBP/USD above 1.28, sending EUR/GBP down to ,8540 from .8640. AUD/USD rose to .6170 from .6040. USD/CAD slipped below 1.41 from 1.4180.