Asia-Pacific markets opened mixed on Monday as traders weighed the potential global impact of new United States trade measures while digesting regional economic data.
The cautious tone followed President Donald Trump’s weekend announcement that the United States would impose 30% tariffs on goods from the European Union and Mexico, effective from 1 August.
In a post on his Truth Social account, Trump revealed the new levies, which added to already simmering trade tensions and prompted renewed risk aversion in global markets.
At 11:35 am AEST (1:35 am GMT), Australia’s S&P/ASX 200 slipped 0.1%, South Korea’s Kospi 200 advanced 0.5%, while Japan’s Nikkei 225 eased 0.5%.
Singapore provided a bright spot, with preliminary data showing that the economy grew by 4.3% year-on-year in the second quarter, up from 4.1% in the first quarter and ahead of the 3.5% growth forecast.
Quarterly, GDP rose 1.4%, reversing the 0.5% contraction seen in the previous quarter.
In Japan, core machinery orders fell 0.6% in May from the prior month, a better result than the 1.5% decline expected by economists.
Year-on-year, orders rose 4.4%, exceeding forecasts for a 3.4% increase.
Meanwhile, China’s trade surplus widened to US$114.77 billion in June, with exports accelerating 5.8% year-on-year as exporters moved swiftly to take advantage of the 90-day tariff truce, while imports also rebounded, climbing 1.1% from a year earlier after a 3.4% decline in May.
In the U.S., Friday’s session ended on a soft note. The Dow Jones Industrial Average fell 0.3%, the S&P 500 dipped 0.3%, and the Nasdaq Composite edged 0.2% lower, though the tech-heavy index managed to close at a new record high.
In commodities, Brent crude surged 2.5% to US$70.36 per barrel, marking multi-week highs. Spot gold gained 0.3%, settling at US$2,355.67 per ounce as investors sought safe-haven assets.
Chinese equity markets held firm. The Shanghai Composite ended flat at 3,510.2 after briefly touching its highest level since late October. The CSI 300 added 0.1% to close at 4,014.8.
Elsewhere in the region, Hong Kong’s Hang Seng Index climbed 0.5% to 24,139.6. India’s BSE Sensex, however, slipped 0.8% to 82,500.5 as profit-taking weighed on heavyweight stocks.
European markets closed in negative territory on Friday. The UK’s FTSE 100 fell 0.4% to 8,941.1, Germany’s DAX lost 0.8% to 24,255.3, and France’s CAC 40 dropped 0.9% to 7,829.3.
