Asia-Pacific markets started the week on a cautious footing after United States President Donald Trump said he plans to double tariffs on steel imports from 25% to 50%.
By 11:45 am AEST (1:45 am GMT), Australia's S&P/ASX 200 was down 0.2%, South Korea’s Kospi 200 added 0.2%, and Japan’s Nikkei 225 fell 1.5%.
Markets in China, Malaysia, and New Zealand were closed for public holidays.
The tariff announcement weighed on regional steel stocks. In Japan, JFE Holdings dropped 2% and Kobe Steel slipped 0.9%. Nippon Steel was down 0.5%, despite Trump describing it as a “great partner” to U.S. Steel in remarks delivered to U.S. steelworkers.
South Korea’s Hyundai Steel also fell 3.6%
Meanwhile, traders are monitoring a fresh batch of purchasing managers' indices (PMIs).
In Japan, the au Jibun Bank Manufacturing PMI came in at 49.4, slightly above expectations of 49. The data marked the slowest rate of contraction in five months, with modest declines in output and new orders.
Input and output price inflation also eased, and business optimism improved from April’s recent low.
Australia’s manufacturing sector saw softer growth. The S&P Global Manufacturing PMI dipped to 51 in May from 51.7 expected.
Production contracted for the first time in three months, while new orders increased at a slower pace. Purchasing activity and input stocks both declined.
South Korea’s PMI data signalled significant weakness, with the index falling to 47.7 - its lowest since June 2020. Output dropped at the sharpest pace in 31 months, and new orders saw their steepest fall since mid-2020.
However, employment rose for the first time since October 2024, and business sentiment improved modestly.
Global equity markets were mixed at the end of last week. On Wall Street, the Dow Jones Industrial Average gained 0.1%, while the S&P 500 was flat and the Nasdaq Composite slipped 0.3%, as investors wrapped up a strong May.
Commodities were broadly weaker. Brent crude fell 0.9% to US$62.78 a barrel - its lowest level in three weeks - while spot gold lost 0.8% to trade at US$3,289.70 per ounce.
In mainland China, stocks closed lower before the Monday holiday, with the Shanghai Composite down 0.5% at 3,347.5 and the CSI 300 index off by 0.5% at 3,840.2.
Hong Kong’s Hang Seng Index dropped 1.1% to 23,043.1, while India’s BSE Sensex slipped 0.2% to 81,451.0.
European markets showed a mixed finish on Friday. London’s FTSE 100 rose 0.6% to 8,772.4, Germany’s DAX added 0.3% to 23,997.5, while France’s CAC 40 dipped 0.4% to 7,751.9.
