Asian shares were mostly lower on Tuesday, following a tech-fueled gain on Wall Street. The Hang Seng Index in Hong Kong dipped as tech and property stocks slid, while Japan’s Nikkei 225 fell slightly after a preliminary manufacturing report showed the fastest pace of output decline in a year. Investor sentiment was dampened by weak PMI data and concerns over potential tariffs.
President Trump signaled flexibility on reciprocal tariffs, which could take effect in early April, easing fears of a global trade war and a more hawkish Fed. Despite Trump’s comments and U.S. market gains, the prospect of higher tariffs and geopolitical tensions signal a testy Asian session. Japan’s private sector PMI numbers potentially closed the door to a Bank of Japan rate hike in the first half of 2025.
“Strong inflation, coupled with concerns over labour shortages, an ageing population, subdued client spending and increased uncertainty over the international trade environment dampened optimism around the outlook,” said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence. In Mainland China, equity markets had a mixed start to the week. The CSI 300 gained 0.33%, while the Shanghai Composite Index slipped by 0.09%.
asian markets mixed amid global tensions
News from Beijing contributed to gains for tech giants Alibaba and Baidu. Australia’s ASX 200 struggled on Monday morning, dipping 0.02%.
Banking stocks advanced while tech stocks declined. The recent drop in 10-year U.S. Treasury yields fueled demand for high-yielding Aussie banks. Global markets remain sensitive to trade and policy signals.
Renewed U.S.-China trade friction could hit sentiment but may also prompt fresh Chinese stimulus. Central bank forward guidance remains key as policymakers navigate inflation and geopolitical uncertainty. While geopolitical risks persist, China’s policies may underpin regional equities.
Further consumer-oriented stimulus could offset U.S. recession fears and bolster demand for Chinese and Hong Kong-listed stocks.
