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Gold hangs near record high on safe-haven flows

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Currency market muted ahead of reciprocal tariffs

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Investors brace for Trump's levies

By Ankur Banerjee

SINGAPORE, April 2 (Reuters) - Asian stocks stuttered on

Wednesday, while the safe-haven gold was stuck near record highs

as a nervous world awaited details of U.S. President Donald

Trump's tariff plans, with investors fretting about the risks of

an intensifying global trade war.

Investor focus in recent weeks has been firmly on the new

round of reciprocal levies that the White House is due to

announce on Wednesday at 2000 GMT and which are expected to take

effect immediately after Trump announces them.

Trump has already imposed tariffs on aluminium, steel and

autos, along with increased duties on all goods from China that

have rattled markets as fears grow a full-blown trade war could

trigger a sharp global economic slowdown.

Asian stocks fell in early trading, after a choppy U.S.

session. Japan's Nikkei slipped 0.3% and South Korea's

benchmark index was 0.57% lower.

On Wall Street, the benchmark S&P 500 and the Nasdaq

ended higher after losing ground earlier in the session.

The Dow finished a shade lower.

"We find our trading environment in a state of chop, with

the whippy price action across markets being thematic of market

players massaging exposures around the edges and not wanting to

commit," said Chris Weston, head of research at Pepperstone.

Chinese stocks opened slightly mixed, with the blue-chip

index up 0.14%. Hong Kong's Hang Seng was 0.3%

lower in early trading.

"Trump has called April 2 'Liberation Day' but it is

unlikely that investors will truly be liberated from tariff

uncertainties," said Vasu Menon, managing director of investment

strategy at OCBC.

"If countries retaliate, Trump could up the ante - this

possibility will probably continue to keep investors nervous."

Beyond the tariff news, investors are increasingly worried

by signs of rising prices, slowing growth and cracks in the

labour market.

Data showed U.S. manufacturing contracted in March after

growing for two straight months, while a measure of inflation at

the factory gate jumped to the highest level in nearly three

years amid rising anxiety over tariffs on imported goods.

"Tariffs are meant to reinvigorate U.S. manufacturing, but

there is more concern about what they mean for supply chains and

the prospect of foreign retaliation right now, amidst signs of a

cooling domestic economy," ING economists said in a note.

A report from the Labour Department also showed on Tuesday

U.S. job openings fell in February by 194,000 to 7.568 million

as uncertainty surrounding tariffs squelched labour demand.

The yield on the benchmark U.S. 10-year Treasury note

was at 4.189% in Asian hours having slid to 4.133%

on Tuesday, its lowest level since March 4.

The currency markets remained muted, with most pairs trading

in tight ranges. The euro was steady at $1.079125,

while sterling changed hands at $1.29125. The yen

was a shade weaker at 149.83 per dollar.

The spotlight though will remain on tariff details,

especially after a media report said Trump's aides are

considering a plan that would raise duties on products by about

20% from nearly every country, rather than targeting certain

countries or products.

"We head into Trump's moment to shine with many having

already deleveraged to run as flat or neutral a position as they

can in equity, the USD (dollar) and Treasuries." Pepperstone's

Weston said

The price of gold, viewed as a safeguard against financial

and political stress, remained well bid at $3,132.43 per ounce,

up 0.7% and just below the record high touched in the previous

session.