Asian stocks are trading in a mixed manner on Monday following the positive signals from Wall Street last Friday.
Investors weigh the uncertainty surrounding US trade policy after President Donald Trump indicated some flexibility in regards to upcoming reciprocal duties set to go into effect on April 2. He also warned that exemptions granted for one country may set a precedent.
Trump declared on Friday that “April 2nd will be the liberation day of America.” We’ve been taken advantage of by all countries, both friends and enemies.
Japan’s Nikkei trades flat
After three days of losses, the Japanese stock exchange is trading in an choppy manner.
The Nikkei index is still below 37,700, despite gains made by index heavyweights, which are offset by the weakness of exporters and financial shares.
Nikkei’s benchmark index was down by 0.0002% at 37 676.97 after reaching a previous high of 37 841.68.
SoftBank Group has gained nearly 3% while Fast Retailing, the parent company of Uniqlo, is up by 0.4%. Honda has gained 0.1% and Toyota gains almost 1%.
According to the Jibun Bank’s latest survey, Japan’s manufacturing industry continued to contract at a rapid pace in March.
The Manufacturing PMI dropped to 48.3 in March from 49.0, remaining below the 50 mark that separates growth from contraction.
Services PMI fell to 49.5 in March, down from 53.7% in February.
Hong Kong Hang Seng’s fluctuation amid concerns over tariffs
Hong Kong’s stocks fluctuated between gains and losses, as investors were cautious in anticipation of Trump’s next tariff round.
Hang Seng Index fell 0.24%, to 23,633.06; it moved between a maximum of 23,769.27 and lows of 23,531.20. Hang Seng Tech Index fell less than 0.1%.
The CSI 300 Index rose 0.3% on the mainland while the Shanghai Composite Index fell less than 0.1%.
China is ready to respond to potential trade shocks.
Li Qiang, Premier of China at Sunday’s China Development Forum said: “We are prepared for any unexpected shocks that may occur. These will mainly be external.”
The Chinese government, if necessary will implement new policies in order to maintain the efficiency of the Chinese economic system.
Investors will continue to closely monitor trade data and the economic developments in coming days as there is no apparent resolution.
The Other Asian Markets
Australian stocks are trading lower today, giving up gains made in the previous two sessions.
The benchmark S&P/ASX 200 is down 6.20 points, or 0.08 % to 7,925.20.
Investors reacted positively to the political events in South Korea, and shares there were not much changed Monday.
Local media reported that the Constitutional Court had overturned Prime Minister Han Duck Soo’s impeachment and reinstated him as acting President.
Kospi traded at 2,640.38, a drop of around 0.10 %.
The post Asian Stocks jittery Monday: Nikkei Flat, Hang Seng Continues Losing Streak may be updated as new information becomes available
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