Futures tipped a higher open for Asian markets on Tuesday, tracking gains seen on Wall Street although worries over U.S. trade policy had capped the advance in stocks stateside.
Markets in Japan and Australia were poised for moderate gains: Nikkei futures traded in Chicago were up 0.38 percent compared to the index’s Monday close and Australian SPI futures were higher by 0.34 percent at the end of the last session.
U.S. stocks rose on Monday after dipping early in the session on trade concerns. The Dow Jones Industrial Average rose 0.15 percent, or 35.77 points, to close at 24,307.18, the S&P 500 edged up by 0.31 percent to 2,726.71 and the Nasdaq composite outperformed, advancing 0.76 percent to finish at 7,567.69.
Those slight gains came before a looming July 6 deadline that would see the U.S. impose a 25 percent tariff on $34 billion worth of Chinese goods from more than 800 product categories. China has also announced that it will retaliate with duties on the same value of U.S. products.
The U.S. is also engaged in disputes on trade issues with other key trading partners, including Canada and the European Union. The U.S. could face tariffs from the European Union on as much as $300 billion in U.S. goods if the Trump administration proceeds with imposing duties on European cars, the Financial Times reported.
Markets in Europe and Asia closed lower in the previous session amid the concerns over trade, with the pan-European Stoxx 600 declining 0.84 percent. Asian stock indexes saw steeper losses as China markets resumed their slide after getting some reprieve at the end of last week, with the Shanghai composite dropping 2.52 percent on Monday.
Amid the market moves ahead of that July 6 deadline for tariffs, U.S. Commerce Secretary Wilbur Ross told CNBC there was no “bright line level of the stock market” that would change U.S. President Donald Trump’s mind on trade policy.
Investor jitters over trade concerns also saw the greenback firm in overnight trade. The dollar index, which tracks the dollar against a basket of currencies, last stood at 95.0.35. Against the yen, the dollar traded at 110.84.
Ahead, the Reserve Bank of Australia is set to announce its interest rate decision at 12:30 p.m. HK/SIN.
