- Japanese stocks surged as the yen weakened against the dollar.
- Bitcoin reached its highest level since January, nearing $103,090.
- A U.S.-UK trade deal raised hopes for progress in global tariff talks.
- Crude oil prices rose, while gold continued its decline.
- U.S.-China trade talks set for Saturday in Switzerland.
Japanese Stocks Surge Amid Weaker Yen
Japanese equities experienced a significant boost on Friday, driven by a weaker yen against the U.S. dollar. The Nikkei and Topix indices each climbed approximately 1.2%, with the Topix extending its winning streak to 11 sessions, the longest since October 2017. This rally was fueled by optimism surrounding a new trade agreement between the United States and the United Kingdom, which has sparked hopes for broader progress in global tariff negotiations.
U.S.-UK Trade Deal Sparks Optimism
The recently announced trade agreement between the U.S. and the UK marked the first deal since President Donald Trump initiated a 90-day pause on trade tariffs. While the deal reduces U.S. duties on UK car exports and lowers Britain’s tariffs on American goods from 5.1% to 1.8%, analysts have described it as “more style over substance.” According to Kyle Rodda, a senior financial markets analyst at Capital.com, the agreement signals the U.S.’s intent to pursue rapid trade deals, potentially setting a positive tone for upcoming U.S.-China trade talks scheduled for Saturday in Switzerland.
Bitcoin Hits Highest Level Since January
Bitcoin surged to $103,090.17, its highest level since January 31, closing in on its all-time high of $109,071.86. This rise was attributed to improved market sentiment and increased inflows into Bitcoin-focused investment products, including exchange-traded funds (ETFs). Geoffrey Kendrick, global head of digital assets research at Standard Chartered, noted that the cryptocurrency is now driven more by market flows than risk sentiment. He also predicted that Bitcoin could reach a new record high of $120,000 in the second quarter of 2025.
Crude Oil Prices Rise, Gold Continues to Slide
Oil prices continued their upward trajectory, with Nymex crude rising 0.2% to $60.02 per barrel and Brent crude climbing 0.3% to $63 per barrel. These gains followed a 3.2% and 2.8% surge, respectively, on Thursday. In contrast, gold prices weakened for the third consecutive session, dropping 0.5% to around $3,288 per ounce. The decline in gold reflects a broader shift away from safe-haven assets as market sentiment improves.
Dollar Strengthens, Yen and Euro Struggle
The U.S. dollar index reached a one-month peak at 100.77, supported by higher Treasury yields and reduced demand for safe-haven bonds. The euro fell to a one-month low of $1.12105, while the yen recovered slightly to 145.77 per dollar after hitting a one-month low of 146.175 on Thursday. Sterling also slipped to a three-week low of $1.32205.
U.S.-China Trade Talks Awaited
Despite the optimism surrounding the U.S.-UK trade deal, concerns remain about its limited scope and implications for other negotiations. Analysts are cautiously optimistic about the outcome of the U.S.-China trade talks, which could significantly influence global market trends. Constructive dialogue between the two economic giants is expected to drive further gains in equities and other risk assets.
Source: Reuters, Capital.com, Standard Chartered