Asian stocks were mixed on Monday as investors evaluated the evolving trade war landscape, with countries maneuvering to soften the impact of Donald Trump’s sweeping tariffs.
Attention also remained on China after President Xi Jinping and top leaders outlined new plans to stimulate consumption and boost economic growth.
Following a strong rally last week, markets opened the new week on a cautious note, with upcoming earnings, economic data, and central bank decisions in sharp focus.
“We’re heading into a risk-heavy trading week with a cautiously optimistic tone,” said Chris Weston of Pepperstone. “Incoming economic data and US corporate earnings will determine whether the risk rally continues, though expectations are low and the ‘wall of worry’ is there to climb.”
Weston added that recent White House sensitivity to sharp market reactions — notably the bond market’s selloff after Trump’s “Liberation Day” tariffs — has given investors renewed confidence that extreme market volatility can prompt policy recalibrations.
After Wall Street’s solid finish on Friday, Asian markets saw mixed performances:
- Tokyo, Sydney, Seoul, Taipei, Manila, Jakarta, and Wellington posted gains.
- Hong Kong, Shanghai, and Singapore edged lower.
Gold, which hit a record $3,500 last week amid heightened safe-haven demand, retreated slightly as risk sentiment improved.
Traders are hoping for negotiations to ease Trump’s tariff measures. Reports last week suggested Beijing may exempt some US goods from its retaliatory tariffs, though Chinese officials emphasized that no active talks are underway — despite Trump’s claims of a conversation with Xi.
Meanwhile, Japanese media reported that a second round of US-Japan trade talks is scheduled for May 1, with global markets watching closely for signs of progress. Separately, US Treasury Secretary Scott Bessent indicated that an “understanding” with South Korea could be finalized this week.
Beijing officials are also expected to hold a press conference Monday to discuss employment, economic growth, and development strategies, following recent high-level meetings focused on boosting domestic consumption and countering external economic pressures.
According to Xinhua, Chinese leaders pledged to strengthen multilateralism and oppose “unilateral bullying practices.”
Key Market Figures at 0230 GMT:
- Tokyo – Nikkei 225: +0.5% at 35,887.89
- Hong Kong – Hang Seng Index: -0.2% at 21,945.60
- Shanghai – Composite: -0.1% at 3,291.87
Currencies:
- Euro/Dollar: $1.1356 (down from $1.1359)
- Pound/Dollar: $1.3291 (down from $1.3314)
- Dollar/Yen: 143.62 yen (down from 143.69 yen)
- Euro/Pound: 85.44 pence (up from 85.31 pence)
Commodities:
- WTI Crude: -0.1% at $62.97/barrel
- Brent Crude: -0.1% at $65.76/barrel
Wall Street and London Close:
- Dow Jones Industrial Average: +0.1% at 40,113.50
- FTSE 100: +0.1% at 8,415.25