Asian stock markets were mostly lower on Monday, following a tech-driven rally that helped Wall Street break a four-week losing streak.
U.S. stock futures rose as investors looked ahead to developments concerning President Donald Trump’s tariffs. Reports indicated that Trump may narrow his broad tariff approach to focus on countries with significant trade surpluses with the U.S., many of which are in Asia.
Deepal signs agreement with Crack Platoon for nationwide EV charging network
President Trump has set April 2 as a deadline for imposing additional tariffs on trading partners, following a series of prior deadlines that had been postponed, sometimes at the last moment.
During a meeting with business leaders and U.S. Senator Steve Daines, the first U.S. Congress member to visit Beijing since Trump’s inauguration, Chinese Premier Li Qiang adopted a conciliatory tone. Li stated that relations between the two countries had reached a crucial point and emphasized the need for dialogue over confrontation and win-win cooperation instead of zero-sum competition. He expressed China’s hope for joint efforts with the U.S. to ensure steady and sustainable relations between the two nations.
The meeting also involved leaders from major American businesses, including FedEx CEO Raj Subramaniam, Boeing Senior VP Brendan Nelson, Qualcomm CEO Cristiano Amon, and Pfizer CEO Albert Bourla.
IG’s Junrong Yeap noted that Trump administration officials had hinted that the list of affected countries may not be universal, and existing tariffs, such as those on steel, might not necessarily be cumulative. This sparked optimism that Trump’s tariff plans might be more posturing than substantial.
Despite this, Chinese markets remained sluggish. Hong Kong's Hang Seng Index dropped 0.3% to 23,613.50, while the Shanghai Composite Index fell 0.3% to 3,356.50.
In Tokyo, the Nikkei 225 remained mostly flat at 37,676.97, after a preliminary manufacturing report showed the fastest decline in output in a year, with new orders falling at an even quicker rate.
Taiwan’s Taiex rose by 0.1%.
On Friday, the S&P 500 edged up by 0.1% to 5,667.56, marking a 0.5% weekly gain, though it remains down 4.8% for the month.
The Dow Jones Industrial Average gained 0.1% to 41,985.35, while the Nasdaq composite rose 0.5% to 17,784.05.
Technology stocks led the charge, helping to offset broader declines in the S&P 500. The tech sector, which has been central to the market's recent sell-offs after a strong performance in the previous year, includes some of Wall Street’s most valuable stocks. Apple rose by around 2%, and Microsoft added 1.1%. However, Nvidia fell by 0.7%, while Micron Technology saw an 8% drop, marking the biggest decline among S&P 500 stocks.
Johnson & Johnson plans $55b in US investments over the next 4yrs
Stocks have been struggling for weeks due to concerns about the U.S. economy's direction. A trade war with key U.S. trading partners threatens to exacerbate inflation, impacting both consumers and businesses. Inflation remains persistently above the Federal Reserve’s 2% target, and tariffs could undermine the central bank's efforts to control inflation.
Recent economic data on home sales, industrial production, and unemployment suggested the economy remains resilient, while other reports on consumer sentiment and retail sales revealed growing caution among consumers.
Businesses have been warning investors about the negative impacts of tariffs, inflation, and uncertainty on costs.
Homebuilder Lennar dropped by 4% after issuing a weaker-than-expected forecast for new orders and average sales prices in the current quarter. The company attributed the decline to high interest rates, inflation, and decreased consumer confidence, which are all impacting the already challenging housing market.
In other markets, U.S. benchmark crude oil declined by 22 cents to $68.06 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international benchmark, fell by 30 cents to $71.86 per barrel.
The U.S. dollar rose to 149.78 Japanese yen from 149.37 yen, while the euro edged up to $1.0823 from $1.0816.