*

Nippon Steel ( NISTF ) up after Trump offers support for U.S. Steel

deal

*

Euro rises, dollar recovers as Trump gives more time for

EU deal

*

US, UK markets closed for public holidays on Monday

By Johann M Cherian

SINGAPORE, May 26 (Reuters) - Stock markets across Asia

edged higher on Monday, and the euro rallied after President

Donald Trump abruptly extended by more than a month his threat

to slap 50% tariffs on EU goods, marking another temporary

reprieve as part of his erratic trade policy.

On Sunday, Trump agreed to extend his deadline for trade

talks until July 9, from the June 1 deadline he set on Friday,

after European Commission President Ursula von der Leyen said

the bloc needed more time to "reach a good deal."

Market sentiment had been steadying after a sharp selloff

across most assets last month as Trump paused his growth-denting

tariffs and investors were keen on fresh trade deals after a

pact with UK and a temporary agreement with China.

However, Trump's latest policy moves were a reminder to

investors how quickly circumstances could change and analysts

have been pointing out that investors are shifting their money

out of the U.S. to Europe and Asia as they price in a possible

U.S. recession and a consequent global slowdown.

"(The tariffs are) well above the 20% original reciprocal

tariff on the EU. The U.S., EU, and China account for 60% of

global GDP and so this escalation bodes ill for the entire

world," analysts at Brown Brothers Harriman said in a note.

Apple ( AAPL ) was also caught in the trade crossfire on

Friday, after Trump threatened a 25% levy on all imported

iPhones bought by U.S. consumers.

On Monday, MSCI's broadest index of Asia-Pacific shares

outside Japan inched up 0.12%, while Japan's

Nikkei was marginally higher.

Trading volumes on Monday are expected to be thin given that

markets in the United States and the United Kingdom are closed

due to public holidays.

Japan's Nippon Steel's ( NISTF ) jumped 4.3% after Trump on

Friday expressed support for the company's $14.9 billion bid for

U.S. Steel, saying their "planned partnership" would

create jobs and help the American economy. Shares of U.S. Steel

soared 21% on Friday.

Super-long Japanese bonds will be in focus, with inflation

data expected later in the week as investors try to gauge the

Bank of Japan's monetary policy outlook. Yields on the tenors

hit record levels last week.

Ballooning debt levels in developed economies were also

brought back into focus following Moody's credit rating

downgrade of the United States and weak debt auctions in the

U.S. and Japan last week.

China's blue-chip index slipped 0.2% in early

trading on Monday, while Hong Kong's Hang Seng Index

dipped 0.4%.

Among currencies, the euro strengthened 0.3% to $1.1397

to touch its highest since April 30, while the

greenback recovered as much as 0.3% to 143.085 yen,

after diving 1% on Friday.

On Wednesday, an earnings report from artificial

intelligence bellwether Nvidia ( NVDA ) will be in the spotlight

- the last of the "Magnificent Seven" group of growth stocks

that had spearheaded a more than two-year U.S. bull market.

Analysts said the semiconductor giant's quarterly report

could be the next catalyst for markets, given its forecasts are

seen as an indication of demand for tech infrastructure.

Nvidia's ( NVDA ) shares are down more than 2% this year after

investors took notice of cheaper Chinese AI models in the

aftermath of DeepSeek's release, while CEO Jensen Huang has

flagged that U.S. export curbs will also hit sales.

Reuters reported on Saturday that Nvidia ( NVDA ) will launch a new

AI chipset for China at a significantly lower price, subject to

U.S. government approval.

On the commodities front, crude prices traded higher, while

gold eased marginally from a two-week high.