Asian Markets, Euro Rise After Trump Delays EU Tariff Hike

Asian stock markets inched higher and the euro gained ground on Monday after U.S. President Donald Trump postponed the imposition of 50% tariffs on European goods to July 9, offering investors a temporary reprieve amid escalating global trade tensions.

The delay came after a request from European Commission President Ursula von der Leyen, who said more time was needed to “reach a good deal.” Trump’s decision eased immediate market concerns, with analysts noting increased investor rotation into European and Asian markets over U.S. assets.

“This escalation bodes ill for the entire world,” analysts at Brown Brothers Harriman noted, emphasizing the trade uncertainty between the U.S., EU, and China—who together account for 60% of global GDP.

On the market front, MSCI’s Asia-Pacific ex-Japan index rose 0.12%, while Japan’s Nikkei edged up slightly. Shares in Nippon Steel jumped 4.3% after Trump endorsed its $14.9 billion acquisition of U.S. Steel, calling the move job-positive for the American economy.

Holiday closures in U.S. and UK markets led to subdued trading volumes. Meanwhile, China’s CSI 300 and Hong Kong’s Hang Seng dipped 0.2% and 0.4% respectively.

In currency markets, the euro rose 0.3% to $1.1397, its highest since April 30. The yen weakened slightly, with the dollar rebounding to 143.08 yen after Friday’s decline.

Investor focus is now shifting to Nvidia’s upcoming earnings report on Wednesday. The AI chipmaker’s forecast is expected to signal broader trends in global tech demand amid competition from cheaper Chinese alternatives and ongoing U.S. export restrictions.

On the commodities side, crude prices edged higher, while gold pulled back slightly after touching a two-week high.