Asian Stock Markets Struggle as Tariff Uncertainty Looms Over Global Trade
Asian stock markets had a mixed start on Monday as investors remained cautious over uncertainty surrounding US tariffs.
Bangkok: Asian stock markets had a mixed start on Monday as investors remained cautious over uncertainty surrounding US tariffs. While Chinese stocks led losses, markets in Japan and South Korea showed modest gains. Meanwhile, US stock futures were lower, and oil prices also declined.
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China’s Markets Decline Amid Weak Consumer Demand
Hong Kong’s Hang Seng index fell 1.8% to 23,800.44, while the Shanghai Composite lost 0.2% to 3,366.16. The dip came after data revealed that China’s consumer prices dropped in February for the first time in 13 months, signaling weak domestic demand, exacerbated by the early Lunar New Year holiday.
Also Read: Indian Stock Market Opens Higher, Nifty Above 22,500
Japan’s Nikkei Gains as Trade Talks Continue
In contrast, Japan’s Nikkei 225 rose 0.4% to 37,028.27. The gain followed news that Japan’s trade minister Yoji Muto was in Washington to discuss ways to prevent higher US tariffs on Japanese steel, aluminum, and automobile exports.
“Taking into account the voices from the industrial sector, we aim for a win-win outcome for both Japan and the US,” Muto stated.
Other Asian Markets Show Mixed Trends
- South Korea’s Kospi added 0.3% to 2,570.39
- Australia’s S&P/ASX 200 gained 0.2% to 7,962.30
- India’s Sensex rose 0.3%
- Taiwan’s Taiex fell 0.5%, while Bangkok’s SET index dropped 1.1%
US Stock Market Recovers After Volatile Week
On Wall Street, stocks ended a turbulent week on a positive note, with:
- S&P 500 up 0.6% at 5,770.20
- Dow Jones Industrial Average up 0.5% at 42,801.72
- Nasdaq Composite gaining 0.7% to 18,196.22
Despite this rebound, the S&P 500 remains 6% below its all-time high, set last month. Investors are closely watching the Federal Reserve’s stance on interest rates.
Federal Reserve Holds Steady on Interest Rates
US Federal Reserve Chairman Jerome Powell reassured markets, stating that the economy remains stable and there is no urgent need to cut interest rates.
“The costs of being cautious are very low right now,” Powell said. “The economy is fine. We can wait, and we should wait.”
The US Labor Department reported that 151,000 new jobs were added in February, slightly below expectations but still an improvement over January.
Market Uncertainty Over US Tariff Policy Continues
Uncertainty over US President Donald Trump’s tariff policies remains a key concern. Trump has imposed 25% tariffs on steel and aluminum imports, with exemptions changing frequently, leading to confusion in global trade.
Oil Prices and Currency Markets React
- US benchmark crude oil fell 38 cents to $66.66 per barrel
- Brent crude declined 35 cents to $70.01 per barrel
- The US dollar weakened to 147.58 yen from 147.94 yen
- The euro fell to $1.0823 from $1.0836
Conclusion
With market volatility, shifting US trade policies, and concerns over China’s economic slowdown, investors remain cautious as the new trading week begins.
