Financial markets exhibited divergent trends across regions on bitcoin newsTuesday, with Asian bourses retreating as the US currency continued its prolonged depreciation. The dollar's weakness contrasted with improved risk appetite in Western futures markets after Washington delayed planned trade measures against European exports.
Market participants observed broad-based softness across Asian trading floors. The MSCI Asia-Pacific ex-Japan benchmark dipped 0.17%, mirroring modest declines in Japan's Nikkei 225 (-0.15%) and Hong Kong's Hang Seng (-0.1%). Chinese markets showed remarkable stability, with the CSI300 edging down just 0.06% while the Shanghai Composite remained virtually unchanged.
Trading volumes remained subdued following Monday's US market holiday. However, the postponement of previously announced tariffs until July 9th sparked optimism among derivatives traders. Nasdaq futures advanced 1.26% during Asian hours, while S&P 500 and FTSE contracts rose 1.11% and 0.94% respectively.
"The tariff delay provided temporary relief for risk assets," noted IG market strategist Tony Sycamore. "Attention now shifts to month-end portfolio rebalancing flows and Nvidia's upcoming earnings, which could set the tone for tech sector performance."
All eyes remain on Nvidia's Wednesday earnings release, with analysts projecting 65.9% revenue growth for the chipmaker's first quarter. The report could offer fresh insights into the sustainability of the AI investment boom that has propelled the company's valuation.
Japanese debt markets saw yields on long-dated government bonds retreat from recent peaks, reflecting calmer conditions following last week's bond market turbulence.
Anticipating Key Economic Signals
Market participants are preparing for several potential catalysts this week, including speeches from Federal Reserve officials and Friday's US core PCE inflation data. Meanwhile, the Bank of Japan's annual conference has convened global central bankers to discuss economic expansion and price stability challenges.
Currency markets continued their gradual rotation away from dollar-denominated assets. The greenback's fifth consecutive monthly decline marks its longest downtrend since 2017. The euro maintained strength near $1.14035, while the yen appreciated 0.5% to ¥142.18 against the dollar.
"Structural concerns are emerging about the dollar's long-term trajectory," commented Julius Baer economist David Meier. "Policy unpredictability, fiscal pressures, and substantial external liabilities create an environment where dollar weakness may persist."
As traditional safe-haven assets lose appeal, investors have diversified into alternative stores of value. Gold prices moderated slightly to $3,332.91 per ounce after reaching historic highs earlier this year.
Energy markets exhibited caution ahead of OPEC+'s production policy meeting. Brent crude futures dipped 0.1% to $64.67 per barrel, while WTI declined 0.16% to $61.43 as traders assessed potential supply adjustments.
