From Financial Modeling Prep: 2025-06-02 07:28:00

Asian share markets were volatile on Monday due to renewed U.S.-China trade tensions. President Trump’s threat to increase steel and aluminum tariffs to 50% on June 4 negatively impacted major Asian steel exporters like South Korea and Vietnam. The U.S. dollar also weakened ahead of key U.S. jobs data and a possible European Central Bank rate cut.

South Korean and Vietnamese steelmakers saw their stocks plummet after Trump’s tariff announcement. The prospect of a 50% levy raised concerns about profit margins and future orders. Industry executives are now assessing the financial impact if the higher tariffs take effect next week.

The U.S. dollar slipped against major currencies as markets awaited the U.S. Nonfarm Payrolls report and the ECB Rate Decision. A strong jobs report could signal Fed rate hikes, while a weak one might raise recession fears. The ECB is expected to cut the Eurozone’s deposit rate to boost growth amid low inflation.

Trade talks between the U.S. and China remain uncertain, with Trump planning to discuss mineral disputes with President Xi Jinping. Beijing rejected Trump’s trade criticisms, leading to fears of further retaliatory measures. A recent U.S. court ruling challenged Trump’s tariff authority, but the administration may use other provisions to maintain tariffs.

Investors should focus on key events this week, including the U.S. Nonfarm Payrolls report and the ECB Rate Decision. A beat in job additions could boost U.S. yields and the dollar, impacting Asian equities. A rate cut by the ECB may briefly weaken the euro but benefit European banks. Watch for signals from China and steel sector developments.



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