Asia-Pacific Markets Show Mixed Performance Ahead of US Tariff Deadline

Asia-Pacific markets displayed a mixed performance on Monday as investors closely monitored developments related to US President Donald Trump’s upcoming April 2 tariff deadline.

While most major indexes in the region showed gains, some experienced slight declines amid cautious sentiment.

In Australia, the S&P/ASX 200 inched up 0.07%, closing at 7,936.9.

South Korea’s markets were mixed, with the Kospi falling 0.42% to 2,632.07, while the small-cap Kosdaq gained 0.11%, closing at 720.22. Investors responded to the news that South Korea’s Constitutional Court had struck down the impeachment of Prime Minister Han Duck-soo, reinstating him in his role.

Japan’s Nikkei 225 saw a minor decline of 0.18%, closing at 37,608.49, while the Topix index slipped 0.47% to 2,790.88.

Hong Kong’s Hang Seng Index climbed 0.91% to 23,905.56, and mainland China’s CSI 300 rose 0.51% to 3,934.85. The gains followed comments from China’s Premier Li Qiang, who highlighted “rising instability” in global markets and urged for greater economic openness.

US stock futures rose on Monday, suggesting optimism among investors. On Friday, the three major US stock indexes closed higher, rebounding from recent losses after President Trump indicated some “flexibility” in tariff policies while reaffirming the April 2 deadline for reciprocal tariffs.

• The S&P 500 edged up 0.08%, closing at 5,667.56.
• The Nasdaq Composite gained 0.52%, settling at 17,784.05.
• The Dow Jones Industrial Average added 32.03 points (0.08%) to close at 41,985.35.

Market analysts suggest that uncertainty surrounding potential US tariff hikes could cap stock market gains until clearer policies emerge. Barclays strategists noted that tariff anxiety may limit upside potential in global markets.

Other Key Developments in the Asia-Pacific Region

• Singapore’s inflation hit a four-year low at 0.9% year-on-year in February, aligning with expectations.
• Morgan Stanley raised China’s 2025 GDP forecast to 4.5%, citing strong economic activity in early 2025. However, analysts warned that U.S. tariffs could impact the broader economic recovery.
• In Japan, Sumitomo Realty & Development shares surged over 12% after Elliott Investment Management acquired a significant stake in the company.

With input from Reuters, Bloomberg, and CNBC