Investors reacted negatively to the renewed threats of tariffs from US President Donald Trump, with Asian markets closing mixed on Monday.
Trump has warned that, by the end June of this year, there could be a 25% levy on all smartphones manufactured outside of the US. This includes those made by Apple and Samsung.
The market was somewhat soothed despite the increased rhetoric by the delay of tariffs targeted at the European Union.
Trump has announced that he will delay the 50 percent tariffs for EU imports to July 9 after announcing earlier they would begin on June 1.
Hong Kong stocks fall as EV stock prices crash
Hong Kong’s stocks fell from their recent highs, as China’s slowing economy and weak earnings by corporations weighed down on sentiment.
Hang Seng Index dropped 1.4 per cent to 23,282.33, and Hang Seng Tech Index declined 1.7 per cent.
China’s CSI 300 fell 0.6 percent and the Shanghai Composite slipped 0.1 percent.
BYD’s announcement that it would reduce prices for 22 of its models triggered fears about a price war intensifying and putting pressure on margins.
BYD’s shares fell 8.6 percent, to HK$425.20. Geely Auto fell 9.5 percent and Li Auto dropped by 3.2 percent.
After the Chinese central bank raised the midpoint fix, the Chinese yuan reached a near seven-month high.
Japan Stocks Jump Higher
Japanese stocks rose amid optimism about planned trade talks in Washington. Ryosei Takazawa, the chief negotiator for Japan’s delegation to Washington is preparing for his third round of negotiations.
The Nikkei gained 1 percent, reaching 37,531.53, and the Topix index, which is broader in scope for trading rose 0.6 percent.
Nippon Steel shares rose by 2.1 per cent after the U.S. approved its investment in US Steel.
Regional markets
South Korean stocks surged after technology and batteries led the strong recovery.
Kospi closed at 2,644.40 up 2.02 percent, its highest since February.
Samsung Electronics rose 0.9 per cent and SK Hynix increased 1.5 per cent.
Australian markets closed little different as gains in mining, tech and banking offset losses in the banks.
The S&P/ASX 200 closed flat.
Both benchmark indexes closed in green on Monday, a good sign for the Indian stock market.
The Sensex gained 455.37, or 0.56% to end at 82.176.45. Meanwhile, the Nifty 50 rose 148, or 0.60% to reach 25,001.15.
The buying of auto, FMCG and IT shares boosted investor sentiment. Nifty Bank also took part in the rally and ended 0.31% higher, at 55572.
US Stocks on Friday
Stocks in the US fell on Friday after Trump threatened to impose tariffs against the EU and Apple.
Apple’s shares fell 3 percent. Nasdaq fell 1 percent while S&P 500, Dow, and Dow Jones dropped 0.7 and 0.6 respectively.
The three main indexes all posted weekly losses exceeding 2.5 percent.
The post Asian stocks closed mixed on Monday, Hang Seng fell 1.4% and Nikkei rose 1% could be updated as new information becomes available.
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