Asian stocks traded in a mixed manner on Tuesday following the strong overnight performance of Wall Street.
Investing welcomed the reports that US president Donald Trump could delay some reciprocal tariffs scheduled to come into effect in April.
Investors remain cautious despite the positive signals from the US. Trump’s changing stance on tariffs is leaving them unsure of the policy direction.
Japan’s Nikkei recovers after four consecutive days of losses
Investors reacted positively after Wall Street posted a strong performance, causing the Japanese stock market to surge on Tuesday.
After reaching an initial high of 38.115.65, the Nikkei rose 0.73 percent, to 37.881.70.
The market sentiment has improved, as the gains made by index heavyweights and automakers and exporters have outweighed those of financial stocks and technology.
SoftBank Group gained over 2 percent while Uniqlo’s operator Fast Retailing increased by 1.5 percent.
Toyota has seen a nearly 2-percent increase in sales, and Honda is up by 0.4 per cent.
Hong Kong market falls as investors profit from EV stocks
Hong Kong’s Hang Seng Index dropped 2.17 percent, to 23,387.86. Investors took their profits as there were no strong catalysts.
Chinese shares saw mixed trading with both the CSI 300 Index (CSI 300 Index) and Shanghai Composite Index declining marginally.
Xiaomi dropped 5.44 percent, to HK$53.90. This was after it raised US$5.5 Billion in a share-sale to finance its expansion into electric vehicles.
Geely Auto and Li Auto also fell, while BYD dropped 2 percent, despite reporting an unprecedented 73 percent increase in the fourth quarter profit, which reached 15 billion yuan ($2.1 billion).
The Other Asian Markets
After reaching a high intraday of 7,994.00, the S&P/ASX 200 index rose 0.51 percent, to 7,977.30.
Seoul’s shares began higher Tuesday following Wall Street gains. The index, however, gave back the gains made earlier in the day.
The benchmark Kospi fell 0.34% to 2,622.99.
Wall Street surges Monday
US stocks rose strongly on Monday as investors were encouraged by the prospect of a possible softening in Trump’s proposed tariffs.
The Dow Jones Industrial Average rose by 1.42 percent, to 42,583.32, while the S&P 500 climbed 1.76 percent, to 5,767.57. And the Nasdaq soared 2.27 percent, to 18,188.59.
Tesla’s stock soared nearly 12%.
The other notable winners included Advanced Micro Devices (up 4-7%), United Airlines Holdings (up 4-7%), FedEx, Moderna Stores Dollar Tree, Delta Airlines and Microchip Technology.
After reports that Trump might delay or reduce some tariffs scheduled to go into effect April 2, the market’s reaction was bullish.
The president’s recent comments, however, have created some doubt about the commitment of the administration to adopt a more conservative approach.
The post Asian Stocks Mixed on Tuesday: Nikkei Snaps Losing Streak, Hang Seng Crashes 2% will be updated as new information becomes available.
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