The early focus in Asia was on the fallout from the Musk-Trump tiff, which had weighed on U.S. equities into Thursday’s close. But once Globex reopened for U.S. evening trade, the major indices bounced, showing signs of resilience.

Elon Musk took steps to dial back the dispute, posting on social media that he would not follow through on threats to decommission SpaceX’s Dragon spacecraft. He also added that the U.S. is stronger when Trump and him work together. Trump later echoed the conciliatory tone in comments to Politico, saying of the situation: “Oh, it’s okay… it’s going very well, never done better.” The two are scheduled to speak by phone on Friday. The U.S. dollar edged higher in response to signs of reconciliation.

From Japan, data showed household spending unexpectedly declined in April, underscoring the strain on domestic consumption. Spending fell 1.8% m/m and 0.1% y/y—both well below expectations—after modest gains in March. Although wages have risen, they remain outpaced by inflation, eroding purchasing power. The weak data reinforces the Bank of Japan’s cautious stance. Governor Ueda has made clear that rate hikes remain in question until there is more certainty around wage growth and inflation dynamics. The yen traded slightly weaker following the release.

Elsewhere, Canada’s Prime Minister’s Office released a positive-sounding readout of a call between PM Carney and China’s Premier Li Qiang. The two leaders discussed bilateral relations and agreed to establish regular communication channels between Ottawa and Beijing.

Globex reopen saw ES rise wrap 06 June 2025 2

TSLA bounced back more impressively after getting slammed on Thursday.

Source: Forex Live