Wall Street Soars, Asia Ready to Join the Rally!
July 10, 2025 Asian stock markets are expected to strengthen today after Wall Street closed sharply higher overnight. The S&P 500 index rose 0.6% and the Nasdaq 100 rose 0.7%, driven by the rise in technology stocks, particularly Nvidia, which made history as the first company to reach a $4 trillion valuation. This rally suggests that investors are currently more focused on the economic outlook and company performance than on concerns about US President Donald Trump's new tariff policies.
President Trump announced a new wave of tariffs on Wednesday, including a 50% levy on goods from Brazil and 30% tariffs on countries like Iraq and Sri Lanka. Although these announcements sparked global trade tensions, stock markets actually rose as investors assessed that economic fundamentals and corporate profit potential remained strong. In fact, some investors have become numb to trade war headlines and prefer to focus on market trends.
This condition is also reflected in the movement of the bond market. The yield on the 10-year US Treasury note fell to 4.33% after a $39 billion bond auction received a positive market response. Meanwhile, Japan is also preparing to hold a 20-year bond auction amid concerns about fiscal policy ahead of the election. Furthermore, Bitcoin hit a new record above $112,000, signaling a broad increase in investor risk appetite.
Analysts from various institutions stated that the equity market is currently in a bullish trend, despite short-term risks from geopolitical tensions and trade tariffs. "Equities may be under pressure right now, but the broader trend remains positive as investors become increasingly resilient to negative news," said Craig Johnson of Piper Sandler. Against this backdrop, Asian stocks, such as those in Japan and Australia, are expected to open trading today with gains.
Source: (ayu-newsmaker)
