SYDNEY, March 3 — Asian share markets dithered today as the threat of imminent tariffs lurked in the background, while bitcoin surged on news it would be included in a new US strategic reserve of cryptocurrencies.
US President Donald Trump on social media announced five digital assets he expected to include in a new reserve, including bitcoin, ether, XRP, solana and cardano.
Bitcoin, the world's largest cryptocurrency by market value, shot up more than 11 per cent to US$94,110, while ether, the second-largest cryptocurrency, climbed 14 per cent to US$2,528.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, though Japan's Nikkei rose 1.1 per cent, helped by a softer yen.
S&P 500 futures and Nasdaq futures were both up 0.1 per cent, having staged a late rally on Friday after a week of heavy losses.
Geopolitical uncertainty lingered as European leaders agreed to draw up a Ukraine peace plan to take to the United States, following President Volodymyr Zelenskiy's clash with Trump in the Oval Office.
Worries about the health of US economy had also been fanned by a string of soft data that had seen the closely watched Atlanta Fed GDPNow tracker swing to an annualised -1.5 per cent from +2.3 per cent, sparking talk of a possible recession.
Those fears were fanned on Sunday when US Commerce Secretary Howard Lutnick said tariffs on Canada and Mexico will go into effect tomorrow, but that Trump would determine whether to stick with the planned 25 per cent level.
An extra 10 per cent levy on Chinese imports is also due to come into effect this week, just as the country's National People's Congress opens its third annual session on Wednesday where stimulus measures and possible reprisals against the US could be announced.
"As with other Trump tariff announcements so far, it's hard to know if this is a bluff or a genuine turn in policy," said JPMorgan economist Michael Feroli.
"However, if it were to be realised it would create a significant new headwind to economic activity, as well as an upside support to consumer prices."
— Reuters
