Asian markets experienced a downturn on Monday, June 2, amid escalating U.S.-China trade tensions. Investors are also anticipating key U.S. jobs data and a likely European Central Bank (ECB) rate cut. The Nikkei fell by 1.4%, and Hong Kong dropped by 2.5%.
President Trump's threat to double tariffs on imported steel and aluminum to 50% by June 4 has stirred unease. Treasury Secretary Scott Bessent mentioned Trump's upcoming discussion with Chinese President Xi Jinping to resolve disputes. Beijing has rejected Trump's trade criticism.
Markets are closely watching whether Trump will proceed with the 50% tariff on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan remained flat. South Korean stocks rose 0.2% due to hopes for a clear winner in Tuesday's presidential election.
EUROSTOXX 50 futures dipped 0.2%, while S&P 500 futures eased 0.4%. The Atlanta Fed GDPNow estimate is at an annualized 3.8% for April-June. May payrolls are expected to rise by 130,000, with unemployment remaining at 4.2%.
The ECB is expected to cut rates by a quarter point to 2.0% on Thursday. The Bank of Canada is likely to hold rates at 2.75% on Wednesday. The dollar slipped 0.3% against the yen to 143.55, and the euro edged up 0.2% to $1.1370.
Gold firmed 0.6% to $3,310 an ounce. Brent crude rose $1.60 to $64.38 a barrel, and U.S. crude gained $1.74 to $62.53 per barrel, following OPEC+'s decision to maintain output increases. This information is based on a Reuters report from June 2.