Capital markets and currencies around the world reacted to renewed trade uncertainty between the U.S. and China on Feb. 23, 2026, after the U.S. Supreme Court struck down some previous trade duties and then President Donald Trump announced new universal tariffs of 15% on imports from all countries.
This mix of political uncertainty and economic risks caused notable movements in currency markets and stock indices in both Asia, the U.S. and Europe, Reuters noted.
Currency markets: dollar weakened, Asian currencies on the rise
One of the key reactions was the weakening of the U.S. dollar amid trade policy uncertainty – the dollar index, which measures its value against a basket of major currencies, fell to an area around 97.50 points. Investors doubt the pace of US economic growth and fear the possibility of further escalation of tariffs, FXStreet argues.
In turn, Asian currencies showed strengthening: the Philippine peso added about 0.9%, the Malaysian ringgit added 0.4%, while the Chinese yuan offshore trading session also strengthened amid a reduced risk of escalating trade barriers.
The index of emerging market currencies as a whole rose about 0.24%, approaching its all-time highs, Reuters said.
Analysts explain such movements by the fact that the reduced fear of extremely high tariffs – after the adjustment of rates below the level of peak expectations – supports the assets of developing countries. This encourages capital inflows into riskier currencies, while the dollar loses some of its safe haven status on certain trade and political risks.
The publication quotes John Miller, lead analyst at Eurasia Capital’s currency department: “The dollar is now facing a correction as markets begin to consider not only trade risks, but also the possible impact on monetary policy. This creates a favorable background for emerging market currencies”.
Stocks and indices are also “on a swing”
Stock markets also showed mixed reactions. In Asia, most of the key indices gained: Hong Kong’s Hang Seng Index rose more than 2.3% to around 27,019 points, its best result since mid-February. Technology and export-oriented companies, including major Chinese stocks, added up to 2.5%.
Growth was particularly strong in South Korea and Taiwan: KOSPI reached new highs, rising about 0.7%, helped by expectations of positive results of Nvidia and other major technology companies, notes Reuters.
On the contrary, European stock markets opened with a decline amid the still lingering uncertainty. DAX index fell by 0.61%, CAC 40 lost about 0.35%, and FTSE 100 showed a moderate decline of about 0.07% at the opening of trading.
On U.S. exchanges, the S&P 500 and Nasdaq index futures were also down Monday evening – about -0.2% and -0.4%, respectively, reflecting investors’ cautious attitude toward U.S. assets amid trade uncertainty and possible monetary policy changes.
The precious metals also reflected the change in sentiment, with gold rising more than 1% to three-week highs, indicating demand for safe-haven assets amid market uncertainty, Reuters emphasizes.
What this means for investors and markets
The publication notes in this regard that a combination of trade policies, court decisions and central bank reactions form a complex backdrop for markets. Investors continue to review their positions and strategies for hedging currency risks, as well as closely monitor events that could affect the monetary policy of the U.S. Federal Reserve and other leading central banks.
Analysts note that in the short term, continued volatility is possible amid the announcement of new tariffs and assessment of their impact on corporate profits and supply chains.
At the same time, the success of the technology sector and demand for risk assets in Asia may support the growth of regional markets, even if the global trade policy remains uncertain.
