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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 due at 2000 GMT

(Updates to Asia afternoon)

By Ankur Banerjee

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

Wednesday, while safe-haven gold held near record highs as a

nervous world awaited details of U.S. President Donald Trump's

tariff plans and investors fretted 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.

European futures indicated a subdued open, with STOXX 50

futures down 0.27% and Germany's DAX futures

0.24% lower.

Asian stocks struggled for direction after a choppy U.S.

session. Japan's Nikkei was last up 0.25% after hitting

its lowest level since September earlier in the session. South

Korea's benchmark index was down 0.6%.

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.

"Nervousness is the dominant sentiment right now," said

Ben Bennett, Asia-Pacific investment strategist at Legal &

General Investment Management.

"Investors are hoping for some clarity, and perhaps the

start of the deal making phase. But tariffs are already weighing

on business sentiment, and this will probably feed through into

lower global economic activity in the coming months."

China's blue-chip index was up 0.14%, while Hong

Kong's Hang Seng was little changed.

"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."

SOFT DATA

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.

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 4.197% 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 $1.0792, while

sterling changed hands at $1.29175. The yen

was a shade weaker at 149.92 per dollar.

George Boubouras, head of research at K2 Asset

Management, said the key for investors is to look through the

noise and gauge the landscape for the second half of 2025, "when

the US will roll out their next phase of policies which will

include deregulation and tax cuts."

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." said Chris

Weston, head of research at Pepperstone.

The price of gold, viewed as a safeguard against financial

and political stress, remained well bid at $3,116.96 per ounce,

up 0.2% and just below the record high touched in the previous

session.

Gold has jumped 19% so far this year, adding to a 27% gain

in 2024 that was its best annual performance in over a decade.

Oil prices were steady as traders awaited tariff news. Brent

futures were little changed at $74.45 a barrel, while

U.S. West Texas Intermediate crude futures were at $71.21

per barrel.