Asia stocks steady after rally, focus back on fundamentals

Asian stocks steadied on Tuesday as investors paused for breath after the previous day’s rally, although tech-inspired Wall Street gains supported broader sentiment as focus shifted to bullish economic fundamentals, away from trade concerns.

Spreadbetters expected European stocks to open flat to slightly lower, with Britain’s FTSE (FTSE) declining 0.2 percent, Germany’s DAX (GDAXI) little changed and France’s CAC (FCHI) slipping 0.2 percent.

Asian Stocks Rebound Despite Lingering Trade Concerns

Asian equities rebounded in afternoon trade on Tuesday after the Nasdaq Composite posted a record close overnight, but investors continued to keep an eye on lingering trade concerns.

Mexico is set to impose a 20% tariff on U.S. imported pork legs as retaliatory measures to U.S. President Donald Trump’s tariffs on steel and aluminum, Reuters reported on Tuesday citing industry officials.

The news came one week after Trump administration’s decision to impose steel and aluminium tariffs on Mexican exporters.

Meanwhile, the White House confirmed on Monday that Trump would meet his North Korean counterpart Kim Jong Un at 9 a.m. Singapore time on June 12. However, Press Secretary Sarah Huckabee Sanders noted that the U.S. would continue to economically isolate North Korea.

Gold Prices Drop As Dollar Stays Firm

On Monday, the White House confirmed a time for U.S. President Donald Trump to meet with his North Korean counterpart Kim Jong-un. The two are set to meet at 9 a.m. Singapore time on June 12.

Deemed as a safe-haven investment, gold usually attracts demand in times of geopolitical uncertainty. As tensions on the Korean peninsula seemed to ease, demand for gold also decreased.

In other precious metal trade, silver futures shed 0.04% to $16.425 a troy ounce, platinum futures lost 0.28% to $899.70 an ounce and copper lost 0.29% to $3.129.

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