Asian stocks wobble as Trump trade war rhetoric weighs on risk sentiment

Asian equity markets failed to sustain early gains as renewed trade war concerns from Trump's rhetoric dampened risk appetite, creating spillover effects in currency markets. The uncertainty has strengthened safe-haven currencies, with USD/JPY declining as investors seek yen protection amid heightened geopolitical risks. EUR/USD remains under pressure as European growth concerns compound trade war fears, while GBP/USD struggles with both global risk aversion and persistent Brexit-related uncertainties. AUD/USD, particularly sensitive to China trade dynamics, has weakened significantly as Australia's economic ties to China make it vulnerable to any US-China trade tensions. The revived trade war narrative has shifted forex market dynamics, favoring defensive positioning over risk-taking. Technical levels are being tested across major pairs as traders reassess positions. Market participants are closely monitoring any clarification on trade policies, which could trigger rapid reversals in current risk-off positioning.