Tariffs Shake Global Markets as Dollar Surges and Tech Stocks Resilient

Asian stock markets faced pressure as the dollar strengthened against the yen due to rising U.S. inflation from tariffs. Fed rate cut expectations declined, impacting risk assets. U.S. tech shares remained stable, highlighting resilience against economic pressures. Oil prices fluctuated while bank earnings highlighted mixed investor sentiments.

Financial markets across Asia experienced tension on Wednesday as the dollar hit its strongest point against the yen since April while U.S. inflation metrics indicated that tariffs are raising prices. This development has tempered expectations for Federal Reserve policy easing, with Treasury yields experiencing an upward trajectory.

Despite the broader economic pressures, technology shares proved resilient, buoyed by a notable overnight gain in Nvidia shares. Meanwhile, Brent crude prices hovered close to $69 per barrel.

Market analysts are closely monitoring producer price data, alongside mixed expectations from bank earnings results, to gauge the ongoing impact of inflationary pressures and tariff influences on global economies.

(With inputs from agencies.)