SINGAPORE - Stock markets across Asia were steady on Monday, and the euro rallied after President Donald Trump abruptly extended by more than a month his threat to slap 50 percent tariffs on EU goods, marking another temporary reprieve in his erratic trade policy.

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 Britain.

However, Trump's latest policy moves were a reminder to investors how quickly circumstances could change, and analysts have pointed out that investors are shifting their money out of the US to Europe and Asia as they price in a possible US recession and a consequent global slowdown.

Last Friday's comments were a reminder of Trump and the administration’s unpredictable and seemingly incoherent policies and decision-making, Commerzbank said in a note.

On Monday, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.07 percent, while futures in Europe and Germany indicated a higher open of over 1.5 percent.

Among currencies, the euro appreciated 0.35 percent to $1.1404 - its highest since April 29 - while risk-sensitive currencies of Australia and New Zealand strengthened 0.37 percent and 0.45 percent respectively.

The dollar index , which measures the greenback against a basket of currencies, touched its lowest level since April 22, with analysts saying the "Sell America" narrative is still dominant.

"It still is largely a 'sell dollar story'," said Christopher Wong, currency strategist at OCBC.

"The policy unpredictability surrounding Trump's tariffs and of course, the erosion of the US exceptionalism, this could potentially still undermine sentiment and the confidence in the medium term."

Trading volumes on Monday are expected to be thin given that markets in the United States and Britain are closed due to public holidays.

In Japan, the Nikkei rose, with Nippon Steel gaining 2.3 percent after Trump on Friday expressed support for the company's $14.9 billion bid for U.S. Steel.

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 US and Japan last week.

Signs that the global economy is holding up better-than-feared in the face of recession worries have been a relief for markets overall. Inflation reports out of Japan and Germany later this week, along the Fed's preferred personal consumption expenditure data.

On the commodities front, crude prices traded higher, while gold eased from a two-week high.