Asia-Pacific Markets Show Mixed Results Amid Volatile Week and Rising Concerns Over Global Trade

Asia-Pacific stock markets exhibited mixed performance on Monday following a tumultuous week in global trading, with uncertainty surrounding US President Donald Trump’s tariff policies continuing to influence investor sentiment.

US stocks, which are expected to open lower, have faced significant fluctuations since the start of March. The roller-coaster ride is largely attributed to the ongoing volatility caused by concerns over the potential effects of Trump’s tariff strategies and their impact on US economic growth and inflation. In particular, investors have been closely watching the steel manufacturing sector ahead of the US implementation of a 25% tariff on steel and aluminum imports starting Wednesday.

In Asia, Japan’s Nikkei 225 index led the region with a 0.38% gain, closing at 37,028 points after a volatile trading session. However, the broader Topix index fell by 0.29% to 2,700, trimming earlier gains. Japan also saw a slowdown in cash earnings growth, which rose 2.8% year-on-year in January, compared to a 4.4% rise in December.

South Korea’s Kospi added 0.27%, finishing at 2,570 points, while the Kosdaq index saw a slight dip, down 0.26% to 725. In Australia, the S&P/ASX 200 rose 0.18%, ending at 7,962 points, continuing its rally from the previous session, which marked a six-month high.

In mainland China, the CSI 300 index dropped 0.39% to 3,928.80, while Hong Kong’s Hang Seng Index fell sharply by 1.83%, particularly in the final hour of trading. The ongoing deflationary pressures in China contributed to investor uncertainty, with the country’s consumer price index falling 0.7% in February, marking its first decline in over a year.

China also announced new retaliatory tariffs on certain Canadian agricultural goods in response to Canada’s imposition of import duties on Chinese-made electric vehicles and steel products. These measures include a 100% tariff on Canadian rapeseed oil, oil cakes, and peas, along with a 25% levy on Canadian pork and aquatic products, effective March 20.

Meanwhile, in India, the Nifty 50 index was up 0.27%, and the BSE Sensex climbed by 0.24% by midday local time, reflecting a more positive market sentiment in the region.

In the US, Friday’s trading saw major indices recover some ground. The S&P 500 rose by 0.55%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average added 0.52%. Despite the rebound, the indices still posted their worst week in several months, with concerns over Trump’s trade policies continuing to weigh on the market.

The uncertainty surrounding the tariffs and their broader implications for inflation, market stability, and growth remains a key issue for investors. In particular, the steel tariffs, the risk of escalating trade conflicts, and potential changes in US monetary policy are factors contributing to a volatile global economic environment.

With input from Reuters and CNBC contributed to this report.