Asian markets initially rallied on Monday but pared gains after US President Donald Trump reiterated his commitment to imposing additional tariffs on 2 April, according to AP News.
Trump’s comments, made during a conversation with journalists aboard Air Force One, underscored the ongoing uncertainty surrounding US trade policy and its global repercussions.
In China, stocks rose after the government reported stronger-than-expected industrial output and retail sales data for the first two months of the year. The Shanghai Composite index gained 0.2% to 3,426.13, while Hong Kong’s Hang Seng climbed 0.8% to 21,144.86. However, weakness in the property market, with home prices falling and real estate investment down nearly 10%, tempered optimism.
In Japan, the Nikkei 225 jumped 0.9% to 37,396.52. Meanwhile, in South Korea, the Kospi surged 1.7% to 2,610.69. In Australia, the S&P/ASX 200 rose 0.8% to 7,854.10. In Taiwan, the Taiex gained 0.7%.
On Friday, US stocks rebounded sharply, with the S&P 500 climbing 2.1% to 5,638.94, the Dow Jones Industrial Average rising 1.7% to 41,488.19, and the Nasdaq composite jumping 2.6% to 17,754.09. Despite the rally, the S&P 500 recorded its fourth consecutive weekly loss, marking its longest losing streak since August.
The rebound was driven by strong earnings from companies like Ulta Beauty, which surged 13.7%, and gains in Big Tech and AI-related stocks, including Nvidia (up 5.3%) and Apple (up 1.8%). However, concerns about the economic impact of Trump’s trade policies and potential government spending cuts weighed on investor sentiment.
Trump’s tariff plans and economic concerns
Trump’s insistence on moving forward with additional tariffs has raised fears about the potential for a prolonged trade war and its impact on global growth. The president’s focus on reshoring manufacturing jobs and reducing the size of the federal workforce has created uncertainty for businesses and households, leading to declines in consumer and business confidence.
Analysts warn that while stock prices may be adjusting to the anticipated April tariffs, concerns about the broader economic impact of Trump’s policies are likely to persist. The potential for reduced federal spending and its ripple effects on the economy remain key risks.
Meanwhile, US benchmark crude rose 48 cents to 67.66 per barrel, while Brent crude added 49 cents to 71.07 per barrel. The US dollar strengthened slightly to 148.93 Japanese yen, whereas the euro edged down to $1.0880.
As markets digest Trump’s tariff plans and their potential implications, investors will remain focused on economic data, corporate earnings, and developments in US trade policy.
