Asian Global Markets markets posted gains on Wednesday, echoing Wall Street’s robust performance as investor sentiment was buoyed by President Donald Trump’s decision to delay the proposed 50% tariffs on European imports until July 9. This move provided much-needed relief to global risk appetite, softening demand for safe-haven assets like the Japanese yen and gold.
Tech stocks led the Asian surge, with China’s Xiaomi delivering strong earnings and investor focus shifting to upcoming results from AI giant NVIDIA. The anticipation surrounding NVIDIA’s report, particularly regarding AI demand and China’s regulatory environment, drew heavy interest in chipmakers and AI-related equities. Meanwhile, U.S. futures remained flat, consolidating after a sharp 2% rally in the S&P 500.
Oil prices rose as fears of tighter global supply resurfaced. Potential sanctions on Russia and uncertainty surrounding U.S.-Iran nuclear negotiations stoked concerns, while Chevron’s restricted exports from Venezuela added to the pressure. OPEC+ is also expected to weigh in with a possible production increase of 411,000 barrels per day in July, keeping the energy markets on edge ahead of this week’s meeting.
In Japan, volatility in the bond market drew attention from both the Ministry of Finance and the Bank of Japan. Finance Minister Shunichi Kato highlighted rising yields as a concern, while BOJ Governor Kazuo Ueda emphasized the importance of rate stability as trade discussions with the U.S. continue. Meanwhile, hawkish signals from the BOJ helped contain losses in the yen, despite improving risk sentiment globally.
Back in the U.S., durable goods orders saw a significant decline of 6.3% in April, better than expectations, while consumer confidence rebounded sharply to 98 in May—the biggest monthly rise in four years. These indicators, combined with signs of easing inflation, have fueled expectations for at least two interest rate cuts from the Federal Reserve this year. However, market caution lingers amid persistent fiscal concerns, as Trump’s multi-trillion-dollar “Big, Beautiful Bill” advances through Congress, threatening to worsen the U.S. deficit.
On the geopolitical front, Trump warned Russia’s Vladimir Putin against continued military aggression in Ukraine, while Israel rejected a proposed ceasefire deal with Hamas, reinforcing tensions in the Middle East. As traders brace for the FOMC minutes, preliminary Q1 GDP, and the PCE price index later this week, the next wave of data is expected to shape the dollar’s trajectory and global market dynamics.
Asian stock market rally, NVIDIA earnings forecast, Trump EU tariffs delay, OPEC+ output hike, oil price outlook, BOJ bond yield concerns, U.S. durable goods orders, PCE inflation data, FOMC minutes preview, global trade optimism, AI stock investment 2025, crypto regulation impact, fiscal deficit risks USA, market outlook May 2025.