Asian stocks were a mixed bag on Monday as heightened uncertainty over U.S. President Donald Trump’s trade tariffs weighed on risk appetite, while holidays in China and Japan kept trading volumes slim.
Hong Kong shares outperformed on strength in local tech and automobile names, while South Korea hit a record high on strength in chipmakers, especially Samsung and SK Hynix.
Regional markets tracked some positive cues from Wall Street’s Friday session, where stocks advanced after the U.S. Supreme Court ruled that a bulk of Trump’s trade tariffs could not be passed under a law meant for national economic emergencies.
Trump responded by declaring a 10% universal tariff under a different law, and hiking the levy to 15% shortly after. S&P 500 Futures slid 0.7% in Asian trade on Monday.
Hong Kong, S.Korea up on tech gains
Hong Kong’s Hang Seng index was the best performer in Asia on Monday, rallying 2.7% as bargain buyers stepped in after steep losses last week.
Export-oriented stocks, especially those with exposure to the U.S., were among the best performers as markets bet on a much less hawkish tariff regime in Washington.
Electronics major Lenovo Group (HK:0992), components exporter BYD Co (HK:1211) and clothes maker Shenzhou International Group Holdings Ltd (HK:2313) rose between 1.8% and 4.5%.
In Hong Kong, focus was also on mainland China after the week-long Lunar New Year holiday. The event usually acts as a major economic boost for China, with local markets set to reopen on Tuesday.
AI remained a key point of focus, especially with industry bellwether NVIDIA Corporation (NASDAQ:NVDA) set to report later this week.
Optimism over the technology was a major support point for South Korean markets, with the KOSPI rising over 1% to a record high.
Chipmakers Samsung Electronics Co Ltd (KS:005930) and SK Hynix were among the biggest boosts to the index, amid growing signs that the two will benefit greatly from AI-fueled demand for advanced memory chips.
A report last week said Samsung was likely poised for a major deal with Nvidia to supply advanced memory chips for the latter’s cutting-edge AI processors. The stock hit a record high on Monday.
Asia stocks mixed amid Trump tariff turmoil
Broader Asian stocks mostly moved in a flat-to-low range, with holidays in China and Japan also keeping trading volumes low.
U.S. trade tariffs were a key point of uncertainty for markets, especially as reports over the weekend showed several countries seeking renegotiation or clarity on tariffs with the Trump administration.
Trump signaled he had no intention of deviating from his tariff plans, keeping risk appetite largely frail. Safe havens such as gold and the Japanese yen were seen attracting increased inflows.
Among Asian markets, Singapore’s Straits Times index rose 0.4%. Australia’s ASX 200 fell 0.5%.
India’s Nifty 50 index rose 0.4% in morning trade, aided by gains in local exporters after the U.S. Supreme Court ruling eliminated a bulk of trade tariffs against the country.
Source: Investing