Asian stock markets moved up and down on Monday as investors reacted to news that the White House plans to introduce new trade tariffs next week.
Many fear the tariffs could harm the global economy.
A report suggested that US President Donald Trump might take a more targeted approach to the tariffs, which are expected to start on April 2. However, this did not ease concerns among investors, as uncertainty continued to affect market confidence.
Trump has referred to next Wednesday as “Liberation Day,” when he is expected to announce a series of trade measures against other countries.
Chris Weston, a strategist at Pepperstone, said, “Anticipation and pre-positioning ahead of Trump’s ‘Liberation Day’ on April 2 and the impending deluge of tariff-related announcements that will follow in the days/weeks after will be a growing factor that drives price action, sentiment, and liquidity in markets this week.”
The US Federal Reserve recently warned that economic uncertainty was rising. Similarly, central banks in Japan and Britain have expressed concerns about the impact of the White House’s trade policies.
Meanwhile, Chinese Premier Li Qiang said Beijing was preparing for “shocks that exceed expectations” as it awaits the new measures. Speaking at a meeting with top business leaders, including representatives from Apple, Qualcomm, FedEx, and Pfizer, Li noted that “instability and uncertainty are on the upswing.”
Australian Treasurer Jim Chalmers also weighed in, telling Bloomberg News that the US tariff plans “are not surprising, but they are seismic.”
Despite reports that the US administration may take a softer approach, with some countries facing tougher tariffs than others, market reactions remained mixed.
Trump told reporters on Friday, “There’ll be flexibility” in his tariff plans, but Asian markets still struggled to start the week on a strong note.
Stock markets in Tokyo remained flat, while Shanghai, Singapore, and Taipei recorded slight gains. On the other hand, Hong Kong, Sydney, Seoul, and Wellington saw small declines.
Gold prices held steady at around $3,025 per ounce after reaching a record high of over $3,057 last week, as investors turned to safe-haven assets amid economic uncertainty.
Key market figures (as of 02:30 gmt)
- Tokyo – Nikkei 225: Flat at 37,676.97
- Hong Kong – Hang Seng Index: Down 0.1% at 23,660.67
- Shanghai – Composite Index: Up 0.1% at 3,369.57
- Euro/Dollar: Up at $1.0831 from $1.0815 on Friday
- Pound/Dollar: Up at $1.2930 from $1.2918
- Dollar/Yen: Up at 149.75 yen from 149.36 yen
- Euro/Pound: Up at 83.76 pence from 83.72 pence
- West Texas Intermediate Crude: Down 0.2% at $68.13 per barrel
- Brent Crude Oil: Down 0.3% at $71.97 per barrel
- New York – Dow Jones: Up 0.1% at 41,985.35 points (previous close)
- London – FTSE 100: Down 0.6% at 8,646.79 points (previous close)
