Asian Markets Stay Cautious Amid Softer Trump Tariff Plans; Japan Dips on Weak PMI
Easy Trading Tips – Asian stocks traded in a narrow range on Monday as investors assessed reports that U.S. President Donald Trump may impose less severe trade tariffs than initially expected. Meanwhile, Japan’s markets declined after weak business activity data signaled economic concerns.
China’s AI Gains Lift Sentiment, Offset Early Losses
Chinese stocks rebounded from early losses as optimism over the nation’s artificial intelligence sector boosted investor confidence. Bloomberg reported that Ant Group, backed by Jack Ma, had successfully developed cost-effective AI training techniques using domestically produced chips. This development underscores China’s progress in semiconductor independence, especially after recent U.S. sanctions.
The Shanghai Shenzhen CSI 300 rose 0.5%, while the Shanghai Composite edged up 0.2%. Hong Kong’s Hang Seng remained flat after a volatile session. Alibaba (HK:9988) reversed losses to gain 0.5% in Hong Kong trading, driven by enthusiasm over China’s AI breakthroughs.
Japan’s Stock Market Struggles on Weak Economic Data
Japanese stocks faced pressure as the Nikkei 225 remained flat, while the TOPIX fell 0.3% following disappointing March PMI data.
Key indicators showed Japan’s manufacturing PMI declined for the ninth consecutive month, while the services sector contracted for the first time since mid-2024. Weakened overseas demand, coupled with ongoing tariff uncertainties, weighed heavily on local exporters.
The lackluster data raises concerns about the Bank of Japan’s ability to continue raising interest rates, especially amid sluggish domestic spending and weaker economic momentum in early 2025.
Trump’s Trade Policy Uncertainty Keeps Asian Markets in Check
Asian investors remained cautious ahead of an April 2 deadline for potential new U.S. trade tariffs. Reports over the weekend suggested that Trump might scale back his initial tariff threats, focusing instead on reciprocal tariffs for about 15 countries with significant trade imbalances with the U.S.
While this shift eased some concerns in global markets—boosting Wall Street futures—Asian investors remained wary, as many of the targeted countries are in the region.
Other Asian Markets Mixed as Investors Weigh Risks
Australia’s ASX 200 was little changed despite positive PMI data.
Singapore’s Straits Times Index remained flat.
South Korea’s KOSPI showed limited movement as political uncertainty loomed ahead of a court ruling on impeached President Yun Suk Yeol.
India’s Nifty 50 Futures indicated a stable opening after strong gains in the previous week.
With geopolitical tensions and trade uncertainty dominating investor sentiment, Asian markets are bracing for a critical week ahead.