Asia-Pacific Markets See Mixed Movements Amid Tariff Concerns
Asia-Pacific markets displayed mixed trends on Monday as investor sentiment was weighed down by heightened trade tensions, particularly US tariff threats.
US President Donald Trump indicated plans to announce a blanket 25% tariff on all steel and aluminum imports, a move expected to have far-reaching implications for global trade. The announcement intensified concerns across financial markets and prompted caution among investors.
In Japan, the Nikkei 225 index closed nearly flat, rising by just 0.04% to end at 38,801.17. Meanwhile, the broader Topix index edged down 0.15% to 2,733.01. Economic data showed loan growth in Japan slowed to 3% year-on-year in January from December’s 3.1%, signaling a slight deceleration in lending activity.
South Korea’s Kospi closed unchanged at 2,521.27, while the small-cap Kosdaq climbed 0.91% to 749.67, boosted by gains in technology shares.
Mainland China’s CSI 300 index rebounded from early losses to close up 0.21% at 3,901.06. Hong Kong’s Hang Seng Index surged 1.76% during the last trading hour, driven by gains in technology and consumer stocks. Chinese consumer inflation data showed a 0.7% rise month-on-month in January, hitting a five-month high due to pre-Lunar New Year spending. The producer price index fell by 2.3% annually, a steeper decline than expected.
In India, stocks extended Friday’s losses as the Nifty 50 index dropped 0.91%, and the BSE Sensex declined 0.87% amid concerns over recent interest rate cuts by the Reserve Bank of India.
Australia’s S&P/ASX 200 lost 0.34% to end the session at 8,482.80, reflecting pressure from mining and energy stocks following President Trump’s tariff remarks.
Singapore’s Straits Times Index (STI) reached an all-time high of 3,910.12 points, led by gains in shares of DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank. DBS Group Holdings saw its stock price soar by 4.08% on the back of strong earnings and an increased dividend payout.
On Wall Street, all three major indices closed lower on Friday, with the Dow Jones Industrial Average falling 444.23 points, or 0.99%, to 44,303.40. The S&P 500 and Nasdaq Composite also declined by 0.95% and 1.36%, respectively, as investors reacted to the tariff announcements and rising inflation concerns.
Treasury yields spiked, with the 10-year yield hitting 4.5% during its session high. Expectations are mounting that tariffs could push up prices for US consumers, further influencing Federal Reserve policy.
With input from CNBC, the Associated Press, Bloomberg, and Reuters.
