Mixed Asian Markets Reflect Uncertainty Amid U.S. Trade War Tensions

On Monday, Asian stock markets exhibited varying trends following the Easter weekend, with some exchanges remaining closed. U.S. futures pointed downward as tech firms began preparing for their earnings reports amid ongoing market instability linked to President Trump's trade war.

Analyst Stephen Innes from SPI Asset Management emphasized the tangible damage to the U.S. brand's reputation, asserting that this issue is no longer subject to dispute. Unverified sources mentioned that China has ceased importing some agricultural products and liquefied natural gas from the U.S. to dodge the hefty tariffs of up to 145% imposed in retaliation for Trump’s trade measures.

The lingering effects of Trump's trade war have created significant economic uncertainty, with economists cautioning that his aggressive tariff strategies could potentially trigger a recession if sustained over a longer period. In Japan, the Nikkei 225 index suffered a 1% decline to 34,368.42 due to a lack of progress towards a trade agreement, particularly harming Japanese auto manufacturers facing substantial tariffs on their exports to the U.S.

Despite these developments, the Shanghai Composite index slightly increased by 0.3% to 3,244.44, and the Kospi in South Korea remained nearly stable at 2,484.23. Markets in Hong Kong and Australia were closed on this day, while U.S. markets were shut on Friday after ending mixed during Thursday's trading session, with the Dow dropping 1.3% and the S&P 500 gaining just 0.1%.

This week marks the start of earnings season for major technology companies commonly referred to as the “Magnificent Seven”—which includes notable names like Apple and Amazon—who have witnessed a sharp decline in their combined market value by $3.8 trillion, or 22%, since Trump took office as of April 20. The trade tariffs have disrupted supply chains across China and other important markets globally, exacerbating the economic tensions.

Tesla, a company that produces its electric vehicles in Shanghai, is set to unveil its complete financial results on Tuesday, having previously reported a 13% decrease in car sales from the previous year’s first quarter. On the commodities front, U.S. benchmark crude oil prices fell by $1.20 to $62.81 per barrel, while the international Brent crude standard also dropped by a similar margin.

In currency trading, the U.S. dollar reached a low of 141.08 Japanese yen, its weakest figure since September, and slipped from the previous level of 141.80 yen. Conversely, the euro appreciated to $1.1473 from $1.1404, sparking concerns among economists that a recent decline in the dollar could indicate a more serious issue—namely, diminishing trust in the U.S. as a secure investment haven. In the bond market, yields for the 10-year Treasury rose to 4.35%, up from 4.32% late last Thursday.