Asian markets surged on Monday as investors bet on a major stimulus package from China to counter the economic impact of U.S. President Donald Trump’s new tariffs on Chinese goods.
Traders were also closely watching for any last-minute negotiations to avert the tariffs set to hit Mexico, Canada, and China starting Tuesday. Trump has confirmed 25% tariffs on products from Mexico and Canada, while Chinese goods will face an additional 10% levy this week.
“Markets are on edge as investors hope for a last-minute deal to sidestep U.S. tariffs,” said Stephen Innes, an analyst at SPI Asset Management. “In Asia, all eyes are on China’s National People’s Congress, where traders anticipate a fiscal boost to offset U.S. tariff pressures and sustain China’s strong 2024 equity rally.”
China’s Stimulus Hopes Lift Markets
Ahead of China’s key parliamentary meeting set to open Wednesday, major stock indexes posted strong gains:
• Hong Kong’s Hang Seng and Japan’s Nikkei surged over 1%, while Shanghai’s Composite also advanced.
• Chinese stocks received an additional boost from better-than-expected February manufacturing data, released on Saturday, which showed a return to growth after a dip in January.
• Hong Kong’s rally was further fueled by Mixue Group’s IPO, as shares of the bubble tea giant skyrocketed 40% on debut.
Bitcoin Dips After Weekend Surge
Bitcoin slipped 1.3% in Asian trading on Monday after a sharp 6% jump on Sunday, triggered by Trump’s announcement that he is considering adding five digital assets to U.S. strategic reserves.
Bitcoin, one of the most volatile assets, dropped below $80,000 last week—its lowest level since November—dragging other cryptocurrencies down with it.
Trump and his wife Melania recently launched their own meme coins, sparking criticism that they are monetizing his political influence. Meanwhile, billionaire Elon Musk—a close Trump ally and head of a government efficiency task force—has frequently used his social media platform X to promote cryptocurrencies.
Key Market Figures (As of 02:30 GMT)
Asian Stock Markets
• Tokyo – Nikkei 225: UP 1.0% at 37,516.30
• Hong Kong – Hang Seng: UP 1.2% at 23,223.83
• Shanghai – Composite: UP 0.5% at 3,335.01
Forex Markets
• Euro/Dollar: UP at $1.0419 (from $1.0384 Friday)
• Pound/Dollar: UP at $1.2612 (from $1.2584)
• Dollar/Yen: UP at 150.28 (from 149.52 yen)
• Euro/Pound: UP at 82.62 pence (from 82.51 pence)
Oil Prices
• WTI Crude: UP 1.12% at $70.54 per barrel
• Brent Crude: UP 1.09% at $73.60 per barrel
Western Stock Markets
• New York – Dow: UP 1.4% at 43,840.91 (close)
• London – FTSE 100: UP 0.6% at 8,809.74 (close)