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Asian stock markets: https://tmsnrt.rs/2zpUAr4

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Wall St futures slip 0.2%, European futures similarly down

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Dollar up 0.3% on Canadian currency, euro off 0.2%

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Asian shares regain posture, bitcoin hits record high

(Updates prices to include European stock futures)

By Stella Qiu

SYDNEY, July 11 (Reuters) - U.S. and European stock

futures dipped in Asia on Friday after President Donald Trump

stepped up tariff threats against Europe and Canada, restraining

a broad rally in regional share markets.

The dollar gained on the euro and the Canadian currency as

Trump issued a letter late on Thursday that a 35% tariff rate on

all imports from Canada would apply from August 1, adding the

European Union would receive a letter by Friday.

The U.S. president, whose global wave of tariffs has upended

businesses and policymaking, floated a blanket 15% or 20% tariff

rate on other countries, a step up from the current 10% baseline

rate.

Both Nasdaq futures and S&P 500 futures fell

almost 1% before recovering most of the losses and were last

down 0.2%. EUROSTOXX 50 futures were also last 0.2%

lower.

The euro slipped 0.2% to $1.1676, while the dollar

gained 0.3% to C$1.3695.

Earlier in the week, Trump pushed back his tariff deadline

of July 9 to August 1 for many trading partners to allow more

time for negotiations, but broadened his trade war, setting new

rates for a number of countries, including allies Japan and

South Korea, along with a 50% tariff on copper.

Joseph Capurso, head of international economics at the

Commonwealth Bank of Australia, said the tariff rate of 35% on

Canada is not as bad as feared because most of the imports are

still subject to exemptions under the United

States-Mexico-Canada Agreement (USMCA).

"Now the tariff rate on imports from the EU... That's what

we don't know as yet... The potential escalation between the EU

and the US is a big deal for financial markets," said Capurso.

"If you get something similar to (the U.S.-China trade war

in April), that's going to be very destabilising."

Overnight, Wall Street indexes rose modestly to post record

closing highs as chip giant Nvidia ( NVDA ) made history with a

closing market valuation above $4 trillion.

MSCI's broadest index of Asia-Pacific shares outside Japan

wobbled but was last up 0.4% to hit the highest

level since November 2021. It was driven by a 1.7% rally in Hong

Kong's Hang Seng index, helped by expectations of further

policy support.

Chinese blue-chips jumped 0.9% to the highest

level since December last year ahead of talks between U.S.

Secretary of State Marco Rubio and Chinese Foreign Minister Wang

Yi at the ASEAN Summit.

Tokyo's Nikkei was flat, dragged lower by a 6.3%

drop in shares of Uniqlo owner Fast Retailing ( FRCOF ) after it

warned of a significant tariff impact to its U.S. operations

from later this year.

The yen has been steadily weakening as the prospects dim for

a U.S.-Japan trade deal. The dollar was up 0.4% on Friday at

146.88 yen and is headed for a weekly gain of 1.6%,

the biggest this year.

Bitcoin jumped 3.8% to $117,880, the highest on

record.

With little on the data calendar in Europe and the U.S.,

investors are gearing up for second-quarter U.S. corporate

earnings next week to gauge the impact of Trump's tariffs from

April 2. JPMorgan Chase ( JPM ) is due to release results on

Tuesday, essentially kicking off the reporting period.

In Treasury markets, moves were muted in Asia. Benchmark

10-year U.S. Treasury yields rose 2 basis points to

4.3637%, having edged up a tiny bit overnight after data showed

jobless claims unexpectedly fell last week.

Oil prices rose slightly after losing 2% overnight. Brent

crude futures gained 0.2% to $68.77 a barrel, having

lost 2.2% a day earlier.

U.S. West Texas Intermediate crude was up 0.3% at

$66.75 a barrel.

Spot gold rose 0.4% to $3,337 an ounce.