Asia report: Markets mixed as investors eye tariff impacts
Asia-Pacific markets finished in a mixed state on Monday, as investors remained cautious ahead of the 2 April deadline set by US president Donald Trump for potential reciprocal tariffs.
The looming decision was adding uncertainty to regional trade sentiment, tempering gains in some equity benchmarks.
“US and European stock-index futures rose, buoyed by signs that the next round of tariffs from president Trump may be less aggressive than previously anticipated,” noted TickMill market strategy partner Patrick Munnelly.
“Futures for the S&P 500 and Euro Stoxx 50 advanced, even as the broader MSCI index of Asian shares edged lower.
“Meanwhile, the yield on the 10-year US Treasury climbed, reflecting a cautiously optimistic market mood.”
Munnelly said investor sentiment appeared to be improving as the US prepared to implement its next set of tariffs on 2 April, adding that sources suggested the measures would be more targeted, moving away from the sweeping global approach Trump initially hinted at.
“However, traders remain wary, with officials from China and Australia warning of potential ripple effects on the global economy stemming from US trade policies.
“President Trump is expected to introduce broad reciprocal tariffs on certain countries or blocs but plans to exempt some nations.
“Additionally, the administration is reportedly holding off on announcing separate, sector-specific tariffs, despite earlier suggestions to that effect.”
Markets mixed as investors eye tariff impact
Japan's Nikkei 225 slipped 0.18% to 37,608.49, with losses led by industrial and tech names.
Yaskawa Electric dropped 3.63%, Screen Holdings declined 3.45%, and Nikon Corporation fell 3.04%.
The broader Topix index lost 0.47%.
In contrast, Chinese markets edged higher - the Shanghai Composite rose 0.15% to 3,370.03, supported by sharp gains in small-cap and state-linked firms.
Citic Heavy Industries, Duzhe Publishing & Media, and Jiangsu Dongzhu Landscape all surged over 10%.
The Shenzhen Component added 0.07%.
Hong Kong's Hang Seng Index advanced 0.91% to 23,905.56, driven by strong performances from tech and property-linked stocks.
Haier Smart Home climbed 6.02%, Zijin Mining Group gained 4.98%, and Xiaomi rose 4.2%, amid renewed optimism around China’s economic recovery efforts.
South Korea’s Kospi 100 lagged, falling 0.59% to 2,663.93.
Heavyweights Posco and KakaoPay dropped 5.37% and 4.37%, respectively, while Posco ICT slid 3.99%.
Australia’s S&P/ASX 200 edged up 0.07% to 7,936.90, supported by strength in mining and litigation finance firms.
Mineral Resources jumped 6.9%, Omni Bridgeway rose 5.26%, and Fortescue Metals gained 3.23%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.12%, with Restaurant Brands New Zealand, Sky Network Television, and Meridian Energy among the top performers.
In currency markets, the dollar was last 0.21% stronger on the yen, trading at JPY 149.64.
The greenback was, however, weaker against its antipodean counterparts, falling 0.4% on the Aussie to AUD 1.5879, and retreating 0.14% from the Kiwi, changing hands at NZD 1.7416.
Oil prices moved modestly higher, with Brent crude futures last up 0.36% on ICE to $72.42 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.42% to $68.57.
Consumer inflation cools in Singapore, as expected
In economic news, Singapore’s consumer price index rose 0.9% year-on-year last month, matching economist forecasts and down from 1.2% in January, according to data from the Department of Statistics.
Core inflation, which excludes accommodation and private transport, also cooled to 0.6%, compared with 0.8% the prior month and below the 0.7% median estimate from a Reuters poll.
The moderation reflected easing price pressures across key categories, particularly food and services.
Meanwhile, South Korea’s Constitutional Court ruled against the impeachment of prime minister Han Duck-soo, reinstating him as acting president with immediate effect.
Finance minister Choi Sang-mok, who had been serving as interim head of state, would step down from that role.
Han was impeached in December by the opposition-controlled National Assembly for allegedly obstructing the appointment of justices to the Constitutional Court amid heightened political tensions.
The court’s decision ended months of political uncertainty following efforts to impeach president Yoon Suk-yeol, who briefly declared martial law during a constitutional standoff last year.
Reporting by Josh White for Sharecast.com.