Asia-Pacific markets experienced a mixed day of trading on Monday, following a week of volatility in global markets. The uncertainty surrounding U.S. President Donald Trump’s tariff policies has been a major factor contributing to the roller-coaster ride that U.S. stocks have been on since the beginning of the month. Investors are closely monitoring the impact of the impending 25% tariffs on steel and aluminum imports, set to take effect this Wednesday.
In Japan, the benchmark Nikkei 225 index led gains, rising 0.57% in choppy trade. The broader Topix index also saw an increase of 0.22%. However, the country’s cash earnings only rose by 2.8% year-on-year in January, a slowdown from the previous month’s 4.4% climb. South Korea’s Kospi and Kosdaq indices both added around 0.5%, while Australia’s S&P/ASX 200 rose by 0.2%, reaching a six-month high.
On the other hand, Hong Kong’s Hang Seng Index slipped by 1.69%, and mainland China’s CSI 300 dropped by 0.7%. Over the weekend, China reported that consumer inflation had dropped below zero for the first time in 13 months due to seasonal distortions and deflationary pressures. The consumer price index declined by 0.7% in February compared to a 0.5% gain in the previous month. Additionally, China announced retaliatory tariffs on certain Canadian agricultural goods in response to import duties imposed by Ottawa on Chinese-made electric vehicles and steel and aluminum products last year.
In the U.S., the three major stock indexes closed higher on Friday after a volatile trading day. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted gains, with the S&P 500 rising by 0.55%, the Nasdaq gaining 0.7%, and the Dow Jones adding 0.52%. Despite the positive end to the week, the S&P 500 still recorded its worst week in several months as trade policy actions continued to unsettle investors.
Overall, the global markets remain sensitive to geopolitical events and trade tensions, with investors closely monitoring developments that could impact economic growth and market stability. The coming days are likely to see continued volatility as market participants react to new information and navigate the uncertainties of the current economic landscape.
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CNBC’s Sam Meredith, Alex Harring, and Brian Evans contributed to this report.
