Global Markets React to Trump's Political Moves and Economic Signals

Asian shares dipped, except Japan, reacting to Trump's political activities and potential impact on U.S.-China trade relations. The U.S. dollar firmed slightly due to yen weakness, while European indices are set to open lower. U.S. futures edged up, anticipating further Fed rate cuts. Gold and Bitcoin gained, while oil prices fell on Chinese economic concerns.

Asian shares, excluding Japan, took a hit on Tuesday as investors speculated on the implications of a Trump victory for China. The yen's continued slide also prompted fresh official warnings following last week's suspected intervention. European markets are projected to open lower, with EUROSTOXX 50 futures down 0.3%. Meanwhile, S&P 500 futures gained 0.2%, and Nasdaq futures climbed 0.3%, buoyed by dovish comments from the Fed fueling expectations of more U.S. rate cuts this year.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.3%, extending a similar decline from Monday. Japan's market, coming off a public holiday, saw the Nikkei index rise by 0.3%. Investors are still digesting the aftermath of the assassination attempt on former U.S. President Donald Trump, who announced J.D. Vance as his vice-presidential pick on Monday.

Opinion polls show a closely contested race between Trump and President Joe Biden, though Trump appears to lead in several swing states crucial for the election outcome. The Dow Jones ended at a record high, driven by energy and banking shares. Bitcoin surged, gold approached a record high, and the yield curve steepened as investors geared up for potential Trump-victory trades.

(With inputs from agencies.)