Bloomberg Daybreak: Asia Edition Stock Rally Loses Steam After Wavering Tariff News
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Apr 24, 2025 SK Kim, Executive Director at Daiwa Securities, and Mark Cranfield, Bloomberg MLIV Strategist, dive into the volatile landscape of Asian stocks amid wavering U.S.-China tariff news. They discuss how mixed signals from the Trump administration have dampened market enthusiasm and the implications for the S&P 500. SK Hynix's impressive 158% rise in operating income is highlighted, driven by AI demand and stockpiling fears. The duo also explores how major tech firms are responding to evolving trade policies, balancing short-term challenges with long-term growth prospects.
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Extreme Market Volatility Warning
- Market volatility has reached extremes not seen since the global financial crisis and the 1930s crash.
- This extreme price action implies that either markets must quiet down or equities need to substantially decline to restore balance.
Shift from US Assets to Asia-Europe
- Investors are shifting money from U.S. assets to Europe, China, and parts of Asia.
- This trend is weakening the U.S. dollar and reducing the premium of U.S. markets over the rest of the world.
Fed Independence Under Pressure
- The U.S. Federal Reserve is facing an unusual challenge due to frequent public comments from President Trump.
- Lack of clear assurance about Fed independence may cause investors to discount U.S. assets and raise concerns over monetary policy credibility.