Stocks rallied across Japan and Taiwan on Friday as investor sentiment improved following a trade agreement between the United States and the United Kingdom. The deal has sparked hopes for progress in other pending trade negotiations, even if optimism remains tempered ahead of a scheduled US-China meeting in Switzerland. The Nikkei in Japan surged by 1.7%, and Taiwan’s benchmark index rose by 1.8%, with tech stocks leading the charge. Meanwhile, Hong Kong’s Hang Seng climbed 0.3%, and Australia’s and Singapore’s indices posted gains of 0.5% and 0.8%, respectively.
The momentum in equity markets came amid rising commodity and cryptocurrency prices. US crude gained 0.3% to reach $60.25 per barrel, continuing the upward trend following Thursday’s 3.2% increase. Brent crude followed suit, rising 0.3% to $63.18. Bitcoin also rallied, reaching $103,909.17, its highest value since January 31, and inching closer to its all-time high of $109,071.86. According to analysts, Bitcoin’s growth is now primarily driven by strong capital inflows into cryptocurrency ETFs and increased whale activity, suggesting continued upward momentum.
While the new trade deal was viewed as limited in scope, analysts noted that the US appears focused on rapidly finalizing trade agreements that could incrementally reduce tariffs and trade barriers. The UK agreement includes the retention of a 10% tariff on imports to the US, while easing restrictions on UK car exports and reducing British tariffs to 1.8%. Although seen by some as more symbolic than substantive, the development still fed into the broader narrative of US trade diplomacy warming up under current conditions.
Currency markets responded to the developments with the dollar index hitting a one-month high at 100.86, while the euro fell to a one-month low at $1.1197. The British pound slipped to a three-week low of $1.3213, and the yen dropped to a one-month low of 146.185 per dollar, following a sharp 1.5% decline the previous day. Support for the dollar was bolstered by a steady US 10-year Treasury yield of 4.3667%, reflecting diminished demand for safe-haven bonds.
As attention turns to upcoming trade negotiations and financial disclosures, global markets are cautiously optimistic while Bitcoin investors eye new record highs in the near term.
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