Asian equities edged up on Tuesday while oil prices continued their decline amid uncertainty over US tariffs and expectations of increased crude supply by OPEC+. Investors remained cautious ahead of a crucial US Senate vote on President Donald Trump’s massive tax-and-spending bill and upcoming labour market data.As per news agency Reuters, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent, led by South Korea’s Kospi, which jumped 1.8 per cent. However, Japan’s Nikkei dropped up to 1.1 per cent as a stronger yen and fears over Trump’s tariff threat weighed on investor sentiment. Japanese equities also opened 0.9 per cent lower following concerns that fresh tariffs could hit the country’s exports, reported Bloomberg.Trump is pushing to pass a sweeping economic bill before the July 4 holiday, with debate continuing in the Senate. “Trade is front and centre this week, but alongside that, we’ve obviously got the fate of the ‘One Big Beautiful Bill’,” Ray Attrill of National Australia Bank was quoted as saying by Reuters.Meanwhile, the dollar fell near multi-year lows. The greenback dropped 0.3 per cent to 143.62 yen, and touched $1.1798 against the euro, its weakest since September 2021. Broader dollar weakness reflects ongoing trade tensions and expectations of potential Federal Reserve rate cuts, especially if Thursday’s US payrolls report shows slowing job growth.Oil prices slipped for the second day as traders braced for a possible output hike by OPEC+. Brent crude futures dipped 0.24 per cent to $66.58 a barrel, while US West Texas Intermediate dropped 0.31 per cent to $64.91. According to Reuters, four OPEC+ sources said the group may raise output by 411,000 barrels per day in August, adding to previous hikes and potentially boosting total supply by 1.78 million bpd this year.“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” said ANZ’s Daniel Hynes in a client note, as cited by Reuters.US treasury secretary Scott Bessent also warned that higher tariffs could be reimposed from July 9, dampening global growth expectations. Concerns over the economic fallout from such moves further pressured oil prices.Gold prices, in contrast, rose 0.5 per cent to $3,319.55 per ounce as investors sought safety.With Wall Street coming off its best quarter since December 2023 and geopolitical risks easing after the Israel-Iran ceasefire, markets now await Thursday’s US jobs data, which could shape expectations for Fed action in the coming months.
