Asian stocks retreat as investors ditch risk assets on trade woes

MSCI Asia-Pacific index down 0.30 percent.
S&P 500 futures trade flat to negative.
Japanse Yen reports broad-based gains.

Omkar Godbole FXStreet Contributor

Major Asian equity markets are flashing red as rising fears of a US-China trade war forced investors to move out of risky assets and into the safe haven assets.

As of writing, the MSCI Asia Pacific index-ex Japan is down 0.30 percent. Also, stocks in Australia, Hong Kong, and South Korea are down at least 0.20 percent each. Meanwhile, the Japanese Yen has appreciated by 0.33 percent against the greenback. Consequently, the Japanese equity markets are reporting a 0.5 percent drop.

However, the Shanghai Composite index is trading largely unchanged on the day. The resilience shown by the Chinese stocks seems to have helped the S&P 500 futures recover losses, although a move to positive territory remains elusive on fears Trump's plan to impose fresh tariffs on China could lead to a full-blown trade war.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

USD/JPY stays below 160.50 as markets assess BoJ decision

USD/JPY fluctuates in a relatively narrow range above 160.00 on Tuesday as markets assess the Bank of Japan's (BoJ) decision to raise the policy rate by 25 at the June meeting. Meanwhile, investors keep a close eye on news coming out of the Middle East, while preparing for the critical Fed meeting.

AUD/USD trades in tight channel near 0.7050 despite hawkish RBA message

AUD/USD trades modestly lower on the day at around 0.7050 on Tuesday as markets adopt a cautious stance amid a lack of details surrounding the US-Iran peace agreement. The Reserve Bank of Australia (RBA) left the door open for possible policy tightening after leaving the interest rate unchanged, as expected, at the June meeting but failed to boost the Australian Dollar.

Gold: $4,000 or $4,500? The Fed may decide Gold’s next big move

Gold now surrenders part of its initial advance and recedes to the vicinity of the $4,350 mark per troy ounce on Tuesday. The early enthusiasm sparked by the US-Iran peace deal has faded somewhat, prompting investors to adopt a more prudent stance as they await further details of the agreement and key guidance from the Fed.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it.

BoJ just hiked and US-Iran deal is on the table: Why Japanese Yen is still around 160.00

The Bank of Japan lifted interest rates from 0.75% to 1.00%, its highest level in more than three decades. The landmark move aims to stabilize a sharply weakening Japanese Yen, but by looking at the immediate market reaction, it doesn’t look like it’s going to work.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.