Asian equities struggled to maintain gains on Tuesday, hindered by ongoing worries regarding U.S. trade policies and rising pressure on global central banks. Investor sentiment remains unsettled following President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and warnings of potential recession without rapid interest rate cuts.

Impact of Wall Street on Asia

The losses on Wall Street from Monday, attributed to Trump’s remarks, cast a shadow over Asian markets. Nevertheless, U.S. stock index futures indicate a potential rebound, with S&P 500 Futures up 0.6% in early Asian trading. Market participants are focused on upcoming Q1 earnings, particularly Tesla Inc (NASDAQ:TSLA) set to report later today.

Chinese and Hong Kong Markets Struggle

The China CSI 300 and Shanghai Composite indices remained largely unchanged, while Hong Kong’s Hang Seng index dipped 0.5% after the holiday period. Major e-commerce stocks like JD.com and Meituan plummeted over 6% amid increasing competition in the food delivery sector.

In addition, China’s Commerce Ministry cautioned countries against signing trade agreements with the U.S. at China’s expense, accusing Washington of tariff abuse. Following Trump’s recent increase of tariffs on Chinese goods to 145%, China retaliated with its own 125% tariff hikes.

Japan Grapples with Unique Challenges

In Japan, the Nikkei 225 edged down 0.1%, while the TOPIX index remained stable. A strong yen, attracted by safe-haven demand, pressures the export sector. Furthermore, Prime Minister Shigeru Ishiba expressed significant concern regarding Trump’s proposed 25% tariff on foreign cars, which could seriously impact major Japanese automakers.

The Bank of Japan’s policy path remains under scrutiny as March consumer inflation surpasses targets. Market watchers are also looking forward to Japan’s PMI data set to be released on Wednesday, serving as an indicator of economic momentum.

For In-Depth Market Insights:

• Historical Sector Data – Review past sector performances affected by trade and monetary policies.

• Upcoming Earnings Calendar – Follow major earnings including Tesla to anticipate market reactions.