On February 24, 2026, the APAC market experienced heightened volatility driven by escalating global trade tensions and geopolitical risks. The announcement of a temporary tariff increase to 15% by the U.S. administration, following a Supreme Court ruling, has intensified uncertainty in trade policies. This has led to significant declines in major U.S. stock indices, with ripple effects felt across Asian markets.
In Asia, the Hang Seng Index rebounded by 668 points amid optimism about China's economic outlook, while the Nikkei and Shanghai indices were closed for the day. The U.S. dollar weakened against most currencies, notably the Japanese yen, which strengthened following tariff announcements. Gold and silver prices surged as safe-haven demand increased, while oil prices remained near six-month highs due to geopolitical tensions involving Iran.
The Japanese yen strengthened against the U.S. dollar, with USD/JPY trading around 156 as of February 24. The yen's gains were supported by mixed inflation data from Japan, showing a cooling headline inflation but persistent core-core inflation at 2.6%. The Bank of Japan's cautious stance on rate hikes, combined with U.S. Federal Reserve policy divergence, has created a complex environment for the yen.
Technical analysis indicates USD/JPY resistance levels at 157.07 (daily R3) and support near 153.98 (daily S1). A break below 153 could expose further downside towards 150 and 145 levels. The pair remains below its 50-day EMA but above the 200-day EMA, suggesting near-term bearishness with a longer-term bullish bias.
The Nikkei 225 index closed at 57,686.3 with a sell signal on short-term technicals, reflecting caution amid tariff concerns. Hong Kong's Hang Seng Index showed resilience, rebounding on optimism about China's economic policies. The broader APAC equity markets remain sensitive to U.S. trade policy developments and global risk sentiment.
Gold prices surged over 2%, closing at $5,206.39 per ounce, driven by safe-haven demand amid tariff and geopolitical uncertainties. Oil prices remained elevated, with Brent crude at $71.49 per barrel and WTI at $66.31 per barrel, as markets monitor U.S.–Iran nuclear talks.
| Instrument | Resistance Levels | Support Levels | Technical Bias |
|---|---|---|---|
| USD/JPY | 157.07 (R3 daily), 156.33 (R2 daily), 155.53 (R1 daily) | 153.98 (S1 daily), 153.24 (S2 daily), 152.43 (S3 daily) | Bearish near-term, Bullish long-term |
| JPY/USD (Nikkei 225) | 66,379 (R2 annual), 58,493 (R1 annual) | 15,222 (S3 annual), 23,108 (S2 annual), 36,857 (S1 annual) | Sell signal short-term |
| AUD/USD | 0.68422 (SMA 50) | 0.66091 (SMA 200) | Short-term bullish, mixed seasonality |
| Gold (XAU/USD) | 5,260 / 5,310 | 5,143 / 5,092 | Bullish |
| Brent Crude Oil | 71.49 (current price) | Near six-month support levels | Neutral to bullish |
The APAC market remains in a state of cautious navigation amid ongoing U.S. tariff policy shifts and geopolitical tensions. The Japanese yen's strength reflects safe-haven flows and policy divergence between the Bank of Japan and the U.S. Federal Reserve. Equity markets in the region are mixed, with some resilience in China and Hong Kong contrasting with caution in Japan.
Investors should closely monitor upcoming U.S. economic data releases, Federal Reserve communications, and developments in trade negotiations, as these will likely continue to drive market sentiment and price action across APAC instruments.