Asian stock markets showed mixed results on Monday as investors continued to assess the global trade environment, with particular attention on the U.S.-China trade war and President Donald Trump's tariffs.
The market's cautious sentiment follows a positive run-up last week, with eyes now focused on the upcoming earnings season, economic data releases, and decisions from central banks.
Chris Weston, from Pepperstone, noted, "We head into a risk-event-heavy week with a 'cautiously optimistic' stance, with the outlook for markets depending on economic data and U.S. corporate earnings, though the bar to beat expectations remains low."
Concerns over the impact of tariffs remain, though there is optimism that the White House is becoming more sensitive to market reactions, such as the sharp decline in the bond market following Trump’s tariffs on April 2.
In the wake of strong performance on Wall Street last week, Asia’s markets showed fluctuating results. Tokyo, Sydney, Seoul, Taipei, Manila, Jakarta, and Wellington posted gains, while Hong Kong, Shanghai, and Singapore saw slight declines.
The upbeat sentiment impacted gold, which had reached a record high of around $3,500 last week as investors sought safe-haven assets. Traders are hopeful that governments can negotiate with Trump to reduce the impact of tariffs, with reports suggesting that China may consider exempting certain U.S. goods from retaliatory measures. However, Beijing has stated there are no ongoing negotiations, while Trump claimed to have spoken with Chinese President Xi Jinping.
Japanese media also reported that a second round of trade talks in Washington is scheduled for May 1, closely watched as a key signal for other countries seeking tariff relief.
In other news, U.S. Treasury Secretary Scott Bessent suggested that a trade "understanding" between South Korea and the U.S. could be reached this week.
Meanwhile, Chinese officials are expected to hold a press conference on Monday regarding employment, economic growth, and development, following discussions among China’s top leaders on boosting consumption to stimulate economic growth.
Key figures at 0230 GMT:
- Tokyo - Nikkei 225: UP 0.5% at 35,887.89
- Hong Kong - Hang Seng Index: DOWN 0.2% at 21,945.60
- Shanghai - Composite: DOWN 0.1% at 3,291.87
- Euro/dollar: DOWN at $1.1356
- Pound/dollar: DOWN at $1.3291
- Dollar/yen: DOWN at 143.62 yen
- West Texas Intermediate: DOWN 0.1% at $62.97 per barrel
- Brent North Sea Crude: DOWN 0.1% at $65.76 per barrel
- New York - Dow: UP 0.1% at 40,113.50
- London - FTSE 100: UP 0.1% at 8,415.25
