Most Asian markets start week on positive note

A trader works at his desk on the floor of the New York Stock Exchange during the first session of the new year on January 2, 2025, in New York City. (Photo by TIMOTHY A. CLARY / AFP)

HONG KONG, China — Asian markets mostly rose Monday as investors assessed the global economic outlook while Donald Trump pushes ahead with his trade war.

Trading floors have been hit by uncertainty since the US president returned to the Oval Office last month announcing a series of tariffs against key trading partners.

While some of the measures have been delayed for negotiations, observers warn the imposition of huge levies on exports to the world’s biggest economy could deal a hefty blow to financial markets.

“Traders have been stuck in a game of ‘will he or won’t he’ on sweeping tariffs, with geopolitical allies and rivals alike in the crosshairs,” said Stephen Innes of SPI Asset Management.

“The stock market’s initial reaction was caution, but as delays, carve-outs, and sabre-rattling mix into an increasingly muddled policy picture, the mood is shifting from calculated hedging to outright confusion.”

He added that “tariffs remain one of the biggest risk factors for financial markets.”

“For now, the only certainty is uncertainty.”

After a tepid lead from Wall Street, equities in Asia mostly moved into positive territory.

Hong Kong extended last week’s rally fuelled by a surge in tech firms following the release of Chinese startup DeepSeek’s chatbot.

The mood in the city was given an extra boost Friday by reports that Chinese President Xi Jinping was poised to meet Alibaba co-founder Jack Ma and other top entrepreneurs this week.

The news fuelled hopes of fresh support for the private sector, which has been hit by a series of crackdowns by the government in the past few years, hammering share prices.

Shanghai, Seoul, Singapore, Taipei, Jakarta, and Wellington also rose, though Sydney and Manila slipped.

Tokyo barely moved as data showed the Japanese economy slowed sharply last year, but enjoyed a forecast-topping quarter thanks to strong exports.

Investors are also keeping tabs on developments over the Ukraine war after Trump said Sunday he could meet Russian counterpart Vladimir Putin “very soon,” adding he believed he genuinely wanted to stop the fighting.

The prospect of an end to hostilities has weighed on oil prices, with the commodity extending losses on Monday.