Asian Markets Mixed Amid Trade War Concerns and Hopes for a More Targeted Approach from Trump

Asian Markets Mixed as Trade War Concerns Linger

Asian markets were mixed on Tuesday, with Chinese markets retreating after a broad rally on Wall Street fueled by hopes the Trump administration may take a more targeted approach as it tees up a new round of tariffs on imported goods next week.

Tokyo's Nikkei 225 gained 0.3%, while the Kospi in South Korea lost 0.5%. Hong Kong's Hang Seng sank 2.2% as heavy selling of tech-related shares kept pulling the benchmark lower.

Taiwan's Taiex gained 0.6% and the SET in Thailand lost 0.2%.

Stocks have been riding waves of hope and worry as President Donald Trump has announced and then amended plans on higher tariffs. A new round of tariffs is scheduled for April 2, but Trump has been somewhat closely guarded about his plans, saying Monday that even though he wants to charge “reciprocal” rates — import taxes to match the rates charged by other countries -- that “we might be even nicer than that.”

Other comments have provided less reassurance and in recent days, Chinese markets that had been riding high have pulled back. In a Truth Social post, Trump said Venezuela has been “very hostile” to the U.S. and countries purchasing its oil will be forced to pay a 25% tariff on all exports to the U.S. starting April 2.

That would likely more than double the already high tariffs facing China, which in 2023 bought 68% of the oil exported by Venezuela, according to a 2024 analysis by the U.S. Energy Information Administration. The U.S. also imports oil from Venezuela.

On Monday, the S&P 500 jumped 1.8%, while the Dow Jones Industrial Average rose 1.4%. The Nasdaq composite closed 2.3% higher.

Despite the gains, the benchmark S&P 500 has lost 1.9% so far this year out of concerns that a trade war could hinder economic growth and increase inflationary pressures.

Gains on Monday were broad, with 84% of stocks within the S&P 500 ending higher. Nearly every sector within the index rose.

Technology stocks helped lead the way. The stocks are among the most valuable on Wall Street and tend to have an outsized impact on the broader market's direction.

Tesla climbed 11.9% for the biggest gain among S&P 500 stocks. The electric vehicle maker is still down about 31% for the year.

Genetics testing company 23andme lost more than half its value after it announced over the weekend that it had initiated voluntary bankruptcy proceedings.

AZEK Co. jumped 17.3% after the building materials company announced Australia's James Hardie Industries will buy it in a cash-and-stock deal valued around $8.75 billion.

It's the second large deal in the sector in less than a week, with QXO Inc. announcing on Thursday that it was buying Beacon Roofing Supply Inc. in a deal worth about $11 billion, including debt.