Asian Markets Mixed Amid US-India Defense Deal; Dow Futures Rise Following Tariff Worries on February 14, 2025

Asian markets showed mixed signals following overnight relief in U.S. markets after President Trump eased tariff concerns. According to CNBC TV18, a White House official stated that the U.S. and India are set to sign a defense framework on February 13. This is expected to positively impact trade deficits. Japan's Nikkei saw a 0.5% decrease, while China's Shanghai Index also declined. Australia's index, however, experienced a 0.5% gain. SGX Nifty futures indicated a 100-point jump. On February 14, 2025, Dow Jones Industrial Average futures and Nasdaq 100 futures are up by 23 points, while the other index is flat. Despite initial gains reaching a session high with a 0.77% increase after tariff agreement news, gains could not be sustained. The Modi-Trump talks have raised expectations, focusing on cooperation in defense, oil, and gas sectors, potentially boosting business deals and aiming for a stronger bilateral trade by 2025. U.S. Treasury yields also supported market gains, with the 10-year yield rising to 4.53%, providing some relief to investors. The dollar index weakened, nearing the 107 level after a 0.78% drop, which may support emerging markets, including Indian shares. Nifty has immediate downside support at 22,800. Nifty 50 index managed to pass its 20-day moving average at 23,284. Major downside support is built at 22,800, which can act as a crucial level in case of any pullback. Market movement indicates that equities might be in the initial stages of an upward trend. Bank Nifty has built major bottom out and is continuing to move higher. Overall, the market is showing an outperformance because signals are being received from global markets. However, signals received on tariff war remain positive. (Source: CNBC TV18)