Asian stock markets showed mixed performance on Monday as uncertainty over U.S. President Donald Trump’s trade tariffs dampened risk appetite, while trading volumes remained thin due to holidays in China and Japan.
Hong Kong equities outperformed, supported by gains in local technology and automobile stocks. South Korea reached a record high, led by chipmakers such as Samsung Electronics and SK Hynix, reflecting optimism over AI-driven demand. Some positive sentiment was also carried over from Friday’s Wall Street session, where stocks rose after the Supreme Court of the United States ruled that a significant portion of Trump’s previous tariffs lacked legal justification under emergency economic powers.
In response, Trump announced a new 10% global tariff under a different law and subsequently increased it to 15%. S&P 500 futures fell about 0.7% during Asian trading.
Hong Kong and South Korea Lead on Tech Gains
The Hang Seng Index surged 2.7% as bargain hunters entered the market following steep losses the prior week. Export-focused companies, particularly those with U.S. exposure, benefited from expectations of a less aggressive tariff regime. Among notable gainers were Lenovo Group, BYD Co., and Shenzhou International, which rose between 1.8% and 4.5%. Hong Kong’s focus also turned to China, where the week-long Lunar New Year holiday was ending, traditionally providing an economic boost as markets reopened.
Artificial intelligence (AI) developments remain a focal point, with investors anticipating NVIDIA Corporation’s upcoming earnings report. South Korea’s KOSPI climbed over 1% to a record high, with chipmakers Samsung Electronics and SK Hynix providing the largest support, boosted by potential deals with NVIDIA to supply advanced memory chips for AI processors.
Broader Market Trends
Across Asia, broader indices largely traded in a narrow range, constrained by holiday-driven low liquidity in China and Japan. Trade uncertainties persisted as several countries reportedly sought clarification or renegotiation of U.S. tariffs. Trump’s commitment to maintaining his tariff plans limited risk-taking, benefiting traditional safe-haven assets such as gold and the Japanese yen.
Elsewhere, Singapore’s Straits Times Index gained 0.4%, Australia’s ASX 200 slipped 0.5%, and India’s Nifty 50 rose 0.4%, supported by export-oriented stocks following the Supreme Court ruling on U.S. tariffs.
Frequently Asked Questions
Why did Asian markets experience mixed performance on Monday?
Market movements were influenced by uncertainty over U.S. tariffs, thin trading volumes due to holidays in China and Japan, and sector-specific gains, particularly in technology.
Which markets led gains in Asia, and why?
Hong Kong and South Korea outperformed. Hong Kong saw strong tech and auto stocks rebound after prior losses, while South Korea benefited from chipmakers like Samsung and SK Hynix amid optimism about AI-related demand.
How did the U.S. Supreme Court ruling affect investor sentiment?
The ruling against the legality of Trump’s prior tariffs eased some concerns about trade tensions, supporting gains in export-focused Asian stocks.
What risks remain despite the positive market cues?
President Trump’s announcement of new tariffs under a different law maintained uncertainty, limiting risk appetite. Safe-haven assets such as gold and the Japanese yen saw increased inflows.
How did other Asian markets perform?
Singapore’s Straits Times Index rose 0.4%, India’s Nifty 50 increased 0.4%, and Australia’s ASX 200 declined 0.5%, reflecting varied responses to trade uncertainty and local market conditions.
