Asian Stocks Mixed Amid Tariffs Concerns
Asian markets exhibited a mixed performance on Monday as investors sought bargains amidst worries over US President Donald Trump's tariffs. Japan's Nikkei 225 edged down 0.1% to 38,746.96.
Meanwhile, the Japanese government reported a record current account surplus of 29 trillion yen ($191 billion) for 2024, driven by strong overseas investment returns and a weaker yen. The data grew nearly 30% year-over-year, marking its highest level since 1985.
In currency markets, the US dollar strengthened against the Japanese yen, rising from 151.39 yen to 152.11 yen. The euro declined to $1.0304 from $1.0328.
Hong Kong's Hang Seng index surged 1.5% to 21,442.19, while Shanghai Composite gained 0.3% to 3,314.04 despite Trump's tariffs on Chinese imports. Technology stocks witnessed gains amid expectations of Chinese stimulus measures.
South Korea's Kospi ticked up 0.1% to 2,524.85. Australia's S&P/ASX 200 slipped 0.4% to 8,479.30.
In the US, Wall Street ended lower last week, with the S&P 500 losing 0.9%. The Dow Jones Industrial Average declined 1%, led by a sharp drop in Amazon's stock. The Nasdaq composite fell 1.4% due to disappointing earnings from Amazon.
Treasury yields rose after a report suggested consumer sentiment was unexpectedly pessimistic. The preliminary report from the University of Michigan indicated that US consumers expect inflation to reach 4.3% in the coming year, the highest since 2023.
Investors are monitoring upcoming earnings reports from US and global companies. Japanese automakers Honda Motor Co. and Nissan Motor Corp. will announce earnings on Thursday, amid ongoing talks about a potential joint holding company.
In energy markets, US crude advanced 44 cents to $71.44 per barrel, while Brent crude rose 48 cents to $75.14 per barrel.