Asian equities were mixed on Monday, supported by optimism that the US Federal Reserve could cut interest rates in September following weak economic data last week that strengthened expectations for monetary easing.
Gains were capped by concerns over the potential economic fallout from President Donald Trump’s newly implemented “reciprocal tariffs” on more than 90 trading partner nations.
Markets across the region had closed mostly lower on Friday.
Japanese markets were shut for the Mountain Day holiday on Monday. On Friday, Japanese shares had finished sharply higher.
Hong Kong stocks open lower ahead of tariff deadline
Hong Kong stocks began Monday on a cautious note as investors awaited the expiry of a 90-day US-China tariff ceasefire, set to end on Tuesday, and a series of major corporate earnings announcements.
The Hang Seng Index slipped 0.1% to 24,808.64 as of 10:10 am local time, while the Hang Seng Tech Index declined 0.5%.
China’s CSI 300 Index rose 0.2% and the Shanghai Composite Index edged up 0.1%.
Among individual Hong Kong stocks, Semiconductor Manufacturing International Corp. (SMIC) fell 3% to HK$47.14, and Trip.com Group lost 2.9% to HK$467.80. Xinyi Solar Holdings climbed 4.8% to HK$3.33, and BYD Electronic International advanced 4.6% to HK$38.12.
Alibaba Group Holding gained 0.9% to HK$117.30.
Lithium producers Tianqi Lithium and Ganfeng Lithium rose after Contemporary Amperex Technology announced a three-month suspension of operations at its Jianxiawo mine in Jiangxi province.
UBS’ wealth management arm said last week that tariffs on Chinese exports to the US could ultimately reach 30% to 40%.
Corporate earnings remain in focus this week, with Tencent Holdings scheduled to report on Wednesday and Alibaba on Friday.
Other regional markets
In South Korea, the benchmark KOSPI was little changed, edging up 2.20 points, or 0.07%, to 3,212.21.
Investors were cautious ahead of upcoming US inflation figures and amid uncertainty over domestic tax revisions.
In Australia, stocks reversed two consecutive sessions of losses, supported by strength in iron ore miners, energy, and financial shares.
The benchmark S&P/ASX 200 index rose 31.00 points, or 0.35%, to 8,838.10, after reaching an all-time high of 8,852.30 earlier in the session.
The broader All Ordinaries Index gained 32.80 points, or 0.36%, to 9,109.40.
Wall Street ends week strong
US markets closed broadly higher on Friday, with the Nasdaq Composite setting a new record.
The Nasdaq rose 207.32 points, or 1.0%, to 21,450.02, while the S&P 500 gained 49.45 points, or 0.8%, to 6,389.45.
The Dow Jones Industrial Average advanced 206.97 points, or 0.5%, to 44,175.61.
For the week, the Nasdaq jumped 3.9%, the S&P 500 climbed 2.4%, and the Dow added 1.4%.
The rally came as traders largely dismissed concerns over Trump’s newly implemented tariffs, which took effect at midnight on Friday.
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