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A man is reflected in an electronic stock quotation board outside a brokerage in Tokyo, Japan February 9, 2018. Reuters/Files
Asian shares found relief on Thursday as fears about a global trade war amid US President Donald Trump’s push to introduce protectionist tariffs were tempered by signs the move could include carve-outs for key partners.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.2 per cent, led by gains in South Korean shares, which also benefited from signs of easing tensions between the two Koreas. Japan's Nikkei .N225 gained one per cent.
On Wall Street, the S&P 500 .SPX ended down just 0.05 per cent at 2,726.8 after an initial loss of almost one per cent, with tech shares being a major bright spot.
They erased most losses as White House spokeswoman Sarah Sanders told a media briefing that the impending hefty US tariffs on steel and aluminium imports could exclude Canada, Mexico and a clutch of other countries.
That soothed worries that the Trump Administration could lean more towards protectionist policies after the departure of his top economic adviser Gary Cohn.
“Concerns about the US tariff should ease today following the comments from the White House,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. “Still the issue will continue to hang over in the markets. Investors need to see exactly what steps Trump will take and what retaliatory actions other countries will take in coming days.”
Trump is expected to sign a presidential proclamation establishing the tariffs during a ceremony scheduled for 2030 GMT on Thursday, a source familiar with the situation said.
In the currency market, the Mexican peso and Canadian dollar recovered from their steep losses.
The peso last stood at 18.7125 per dollar MXN=D2 while the Canadian dollar CAD=D4 changed hands at C$1.2910 to the US unit, off its eight-month low of C$1.3002 hit earlier this week.
The dollar also stabilised against other major currencies after its recent hit from fears about the tariff plan.
The euro EUR= traded at $1.2411, having risen to $1.2447 on Wednesday, its highest levels since February 16. The common currency has been rising since it hit a seven-week low of $1.21545 hit on Thursday, when Trump unveiled his tariff plan.
The European Central Bank is all but certain to keep policy unchanged on Thursday but may tweak its communication stance to offer at least a few clues about its progress towards ending its unprecedented bond purchases later this year.
The dollar changed hands at 106.05 yen JPY=, keeping some distance from its 16-month low of 105.24 touched on Friday.
Bitcoin fell after the US Securities and Exchange Commission said many online trading platforms for cryptocurrencies should be registered with the regulator and subject to additional rules.
According to Reuters, on the Bitstamp exchange, it traded at $9,904 BTC=BTSP, having lost 7.6 per cent on Wednesday, its biggest daily fall in over a month.
In commodities, oil prices were under pressure, hit by worries about US protectionism as well as US government data showing an increase in crude inventories and output.
Weekly data from the US Department of Energy showed weekly US crude production hit a record high last week of almost 10.4 million barrels per day.
West Texas Intermediate (WTI) crude futures for April delivery CLc1 fell 2.3 per cent on Wednesday, its biggest daily percentage loss since February 9. They last fetched $61.29 per barrel, up 0.2 per cent so far in Asia on Thursday.