Asia Summary and Highlights 3 February

Asia Session

Over the weekend, Trump announced that he has signed off the 25% tariff for Canada and Mexico (10% for oil) and an additional 10% for China. While it is hardly shocking as previewed in past month, market participants are reacting now and the USD jumped higher across majors at the opening bell, except JPY, lthough this also turned weak as most Asia market came online. The NZD/USD is currently falling the most by 1.66%, followed by USD/CAD 1.49% and AUD/USD 1.46%.

JPY is however broadly holding its own against the USD. As risk assets weaken, the JPY is receiving some haven bids along with the USD. U.S. major equity indexes are down more than 1.5% (Nasdaq 2.5% and Nikkei 2.8%) while regional equities in Hong Kong and Japan are also down more than a percent. USD/JPY is up 0.25% higher at 155.53 with both the U.S Treasury and JGB yields off opening highs. Else, EUR/USD is down 1.14% and GBP/USD is down 0.98%. None of the majors has come close to closing the opening gap, except JPY.