Asian markets witnessed a dramatic turnaround on Litecoin price historyTuesday, erasing Monday's bullish momentum as skepticism overshadowed President Trump's trade announcements. Regional traders quickly abandoned early positions amid renewed uncertainty.
The much-anticipated rally following the US-China 90-day tariff ceasefire failed to sustain momentum. While Wall Street had surged the previous day, European futures indicated downward pressure during Asian trading hours.
Chinese equities showed minimal movement, while S&P 500 and Nasdaq futures declined throughout the Asian session. Market participants remained unconvinced that the tariff reprieve signaled any lasting resolution to trade tensions.
Market Caution Persists Despite Tariff Adjustments
The MSCI Asia-Pacific ex-Japan index dropped 0.2% after touching six-month highs earlier in the session. Fitch Ratings data revealed the US effective tariff rate decreased to 13.1% post-announcement - a significant reduction from 22.8% previously, yet still substantially higher than 2024's 2.3% average.
Investor anxiety has persisted since April's tariff escalation, driving capital away from US assets toward traditional safe havens including the Japanese yen, Swiss franc, and gold.
While the new terms reduced Chinese goods tariffs from 145% to 30%, with reciprocal cuts on US imports to China, markets interpreted this as tactical maneuvering rather than substantive progress. Hong Kong's Hang Seng index reflected this sentiment with a 1.67% decline.
Japan's Nikkei bucked the trend with a 2% surge to February highs, though this failed to alter broader market skepticism about trade relations.
Inflation Data Emerges as New Market Focus
With the 90-day trade pause underway, investor attention has shifted to upcoming US inflation figures that could influence Federal Reserve policy decisions.
Market analysts suggest softer CPI data might redirect focus toward potential rate cuts, potentially weakening the dollar's recent rebound. Current expectations have moderated from April's peak of 100+ basis point cuts to just 56 basis points projected for the remainder of the year.
US Treasury yields reinforced this outlook, with 2-year yields reaching 3.9873% and 10-year yields at 4.4512% - both hovering near one-month highs during early Tuesday trading.
Cryptocurrency markets remained stable despite broader volatility, with bitcoin maintaining its position above $100,000 at $102,676. Unlike previous market downturns, digital assets weren't serving as primary safe havens during this session.
Commodity markets showed mixed reactions, with oil prices retreating slightly from two-week highs, while gold recovered some losses after Monday's 2% drop as trade deal optimism faded.