Asian stocks delivered a mixed performance in thin holiday trade on Monday, with markets in Hong Kong, Australia, and New Zealand closed for the Easter holiday.
Investors navigated lingering US-China tensions, a volatile dollar, and fresh political drama in Washington.
The US dollar slumped after President Donald Trump escalated criticism of Federal Reserve Chair Jerome Powell, threatening to remove him over rate decisions and accusing him of political bias.
In a post on Truth Social, Trump called Powell “always TOO LATE AND WRONG” for not cutting rates, adding pressure ahead of the next monetary policy meeting.
White House economic adviser Kevin Hassett confirmed on Friday that the administration was reviewing the legal feasibility of dismissing Powell, claiming the Fed’s actions were intended to benefit Democrats ahead of the election.
The controversy added to market jitters already frayed by trade disputes.
Asian markets on Monday
In equity markets, China’s Shanghai Composite Index rose 0.45% to 3,291.43 after the People’s Bank of China kept its loan prime rates unchanged, maintaining its accommodative stance.
Trump also unveiled an eight-point plan targeting what he described as “non-tariff cheating” by foreign countries, a move he warned could strain both diplomatic and trade ties.
In response, China’s Commerce Ministry said it would retaliate against countries aligning with the United States in its ongoing tariff war.
Japanese stocks declined sharply as the yen surged to its strongest level since September against the dollar, reflecting investor caution ahead of planned US-Japan currency talks later this week.
The Nikkei 225 dropped 1.30% to 34,279.92, while the broader Topix index lost 1.18% to 2,528.93.
Export-oriented stocks led the losses, with Toyota Motor falling 2.9% and Suzuki Motor down 3.9%.
South Korea’s Kospi index edged 0.20% higher to 2,488.42, extending gains for a third straight session.
However, preliminary trade data for April revealed sharp declines in exports to both the United States and China, casting a shadow over the country’s economic outlook.
Indian markets outperform
Indian stocks outperformed Asian peers on Monday.
Equity indices Sensex and Nifty ended higher on Monday, lifted by gains in heavyweight stocks including HDFC Bank and ICICI Bank after their earnings reports, along with continued foreign fund inflows.
Tech Mahindra, Axis Bank, HDFC Bank, Infosys, State Bank of India, and IndusInd Bank were among the top performers on the Sensex, while Adani Ports, ITC, Bharti Airtel, Titan, Hindustan Unilever, and Sun Pharma declined.
The Sensex closed 855.30 points, or 1.09%, higher at 79,408.50, while the Nifty advanced 273.90 points, or 1.15%, to settle at 24,125.55.
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