Market Update: April 29, 2025
Shanghai, China – As of April 29, pedestrians are navigating streets adorned with Chinese flags in anticipation of the May Day holidays.
The Asia-Pacific market has generally seen gains as investors evaluate trade progress between the U.S. and the region. Asian currencies, which had weakened on Tuesday, have begun to rally alongside a strengthening dollar.
On Monday, India suggested zero tariffs on steel, auto parts, and pharmaceuticals as part of its discussions with Malaysia, reflecting a willingness for further dialogue with Washington.
Treasury Secretary Scott Bessent commented that the U.S. is “very close to some deals” concerning trade agreements.
Following the holiday break, Chinese stocks resumed trading, with the CSI 300 index rising by 0.95% and Hong Kong’s Hang Seng index climbing 0.67%.
Meanwhile, China’s Caixin Services Purchase Manager Index reported a decline to 50.7 in April from 51.9 the previous month, marking the lowest level in seven months.
In India, the Nifty50 index dipped by 0.15%, while the BSE Sensex saw a slight increase of 0.14% in early trading. Australia’s S&P/ASX 200 index remains relatively stable.
Public holidays have kept the Japanese and Korean markets closed.
In the U.S., stock futures have shown little movement as President Biden awaits the commencement of the Federal Reserve’s policy meeting, the first since the announcement of “mutual” tariffs in early April. The two-day meeting will kick off on Tuesday, with decisions on interest rates expected Wednesday. Currently, traders are reflecting a 2.7% likelihood of a rate cut.
Erik Weisman, chief economist at MFS Investment Management, noted that he expects Chairman Jerome Powell to communicate his stance during the meeting. He remarked that the evolving tariff landscape complicates the outlook for future economic conditions and added that Powell may not feel pressed to make immediate changes.
Back on the U.S. markets, stocks declined, marking the end of a nine-day rally for the S&P 500 as investors closely follow global trade developments. The notable index dropped 0.64%, closing at 5,650.38. The Nasdaq composite fell by 0.74% to end at 17,844.24, while the Dow Jones industrial average decreased by 98.60 points (0.24%) to settle at 41,218.83. This was the S&P 500’s longest winning streak since 2004.
