On February 6, 2025, Asian markets experienced a notable rise, tracking the gains seen on Wall Street the previous day. The Tokyo Nikkei 225 index climbed by 0.5% to reach 39,030.39, while Hong Kong's Hang Seng Index increased by 0.3% to 20,654.88, and the Shanghai Composite edged up by 0.1% to 3,232.46. This positive trend in Asia comes in the wake of a significant reversal by the U.S. Postal Service, which lifted a ban on parcels from China and Hong Kong, easing some trade tensions.
However, the atmosphere remains charged with uncertainty as U.S. President Donald Trump announced new tariffs on goods from China, Canada, and Mexico, reigniting fears of a potential 'Trade War 2.0'. OANDA analyst Kelvin Wong highlighted that these developments could significantly impact major U.S. trading partners. Amidst this backdrop, gold prices surged to a new high above $2,882, reflecting investor anxiety regarding the evolving trade landscape. This combination of factors has created a complex environment for global markets as they respond to both economic indicators and geopolitical developments. [569af387]
In Canada, the S&P/TSX Composite Index had recently closed higher, gaining 37.59 points to reach 25,279.35, following Trump's announcement of a tariff delay on Canadian goods, which had temporarily strengthened the Canadian dollar. The positive sentiment was mirrored in U.S. markets, with the Dow Jones rising by 134.13 points to 44,556.04, the S&P 500 increasing by 43.31 points to 6,037.88, and the Nasdaq climbing by 262.06 points to 19,654.02. Investors are closely monitoring upcoming earnings reports from major tech companies and the U.S. jobs report, which could further influence market dynamics. [cdcef96f]