Asian markets creep up on hopes of China fiscal response to Trump tariffs
People walk in front of an electronic stock board showing Japan’s Nikkei index at a securities firm in Tokyo. (AP Photo/Eugene Hoshiko)
Hong Kong, China – Asian markets rose cautiously on Monday, with investors eyeing a potential Chinese stimulus package and President Donald Trump’s looming tariffs.
Investors were also watching for any last-ditch deals to ward off the levies hitting Mexico, Canada and China due to come into force on Tuesday.
READ: Trump says Canada, Mexico tariffs moving forward on schedule
Trump has confirmed 25 percent tariffs on products from Mexico and Canada and further imposed another 10 percent on Chinese goods from this week.
“Traders are on edge for last-minute negotiations to sidestep US tariffs,” said Stephen Innes, an analyst from SPI Asset Management.
“In Asia, all eyes are on China’s National People’s Congress, where traders are betting on a fiscal boost to counter the drag from US tariffs and keep China’s blistering 2024 equity rally alive,” he said.
Hong Kong and Shanghai shed early gains ahead of the key Chinese parliamentary meeting that opens on Wednesday, while Tokyo closed up 1.7 percent.
Chinese stocks had been boosted in part by data released on Saturday that showed manufacturing activity grew in February after a dip the previous month.
Hong Kong was helped by the blockbuster IPO of bubble-tea and drinks giant Mixue Group, which saw its shares jump 40 percent.
Jakarta jumped more than four percent after consumer prices in Southeast Asia’s biggest economy eased 0.09 percent year-on-year in February.
Sydney rose almost one percent, with Manila and Singapore also in the green, while Taipei, Bangkok and Wellington were down.
London, Paris and Frankfurt all opened up, with investors focused on geopolitics as European leaders meet in London to draft a possible Ukraine peace plan after Trump’s clash with Ukrainian President Volodymyr Zelensky in the Oval Office last week.
READ: EU vows firm response if Trump unleashes tariffs
Bitcoin slipped 2.7 percent in Asian trade after a six percent surge on Sunday on the back of Trump’s announcement that he was considering adding five digital assets to US strategic reserves.
Bitcoin, one of the most volatile assets, fell below $80,000 last week for the first time since November, with other crypto currencies mirroring its downward trajectory.
Trump and his wife Melania recently launched their own branded meme coins, sparking accusations they were seeking to make money from his political success.
Billionaire Tesla chief executive Elon Musk — a close political ally whom Trump has tasked with leading a government efficiency drive — has frequently promoted crypto currencies on his own social media network X.
