Asian stock markets opened on a cautious note Tuesday, with investors digesting a mix of Wall Street tech optimism and renewed geopolitical concerns over U.S.-China trade relations. A regional equity index swung between small gains and losses, reflecting investor uncertainty at the start of the trading day.
Futures for U.S. equity indices dipped 0.2%, retracing some of Monday’s tech-fueled rally. The S&P 500 gained 0.4% in the previous session, supported by strength in major technology shares. Historically, June is one of the quieter months for equities, but momentum from the tech sector offered a mild upside.
Bond markets remained steady in early Asian trading, while the U.S. dollar was little changed after dropping to its lowest level since 2023 in the last session.
Oil prices extended gains early Tuesday, driven by supply-side concerns and Middle East developments. Meanwhile, gold held steady after recording its biggest single-day rise in four weeks on Monday, reflecting a flight to safety amid global uncertainty.
Investor sentiment was further complicated by the latest developments in the U.S.-China trade dispute. The United States announced an extension of tariff exclusions on selected Chinese imports under Section 301 until August 31. According to Reuters, the Trump administration is pressing nations to submit their “best offer” in trade negotiations by Wednesday, and is reportedly seeking a direct call between President Trump and Chinese President Xi Jinping.
The ongoing tensions have cast a shadow over global trade outlooks, keeping investors on edge as markets await further clarity.
