Europe-based ASML, the world’s biggest semiconductor chip-making equipment supplier, warned that US tariffs were increasing uncertainty around its earnings outlook for 2025 and 2026, which added “salt” to yesterday’s risk-off sentiment.
The US dollar continued to weaken, and safe-haven currencies, the Swiss franc and Japanese yen, outperformed among the major currencies with daily gains of 1.2% and 1% against the US dollar yesterday, 16 April.
Gold (XAU/USD) stood out positively as trade tensions rage on, and it soared by 3.5% to print a fresh all-time closing high of $3,343 yesterday. In today’s Asian opening session, it extended its gains by 0.2% to print a current intraday high of $3,357 at this time of writing.
Japan has concluded its first day of trade negotiations with US officials, where US President Trump made a surprise move to join in, and commented that there was “big progress” via his social media account.
Trump’s positive comments on the ongoing US-Japan trade talks have offered a possible minor relief to risk assets, as major Asian benchmark stock indices started today’s session with positive gains. Japan’s Nikkei 225 rallied by 0.7%, coupled with a Japanese yen losing 0.6% against the US dollar. Hong Kong’s Hang Seng Index ticked higher by 0.5%.
Risk sentiment in the latter half of the Asian session and early European hours will likely hinge on Q1 earnings results and the 2 PM Singapore time conference call from TSMC, the world’s largest contract semiconductor manufacturer.
