Asian markets experienced significant declines on Monday, primarily due to renewed concerns regarding U.S.-China trade relations. President Trump’s claims that China has violated a recent agreement have added to the tumult, a statement Beijing swiftly refuted. Additionally, Trump’s decision to increase steel and aluminum tariffs has fueled uncertainty within the market.

Key Contributors to Market Decline

• Resurgence of Trade Tensions: Accusations brought by Trump against China and discussions of imposing new tariffs on oil imports from China and India caused investor anxiety.

• U.S. Futures Downturn: S&P 500 Futures fell by 0.4%, resulting in a negative ripple effect throughout the region.

• Geopolitical Pressures: Increased hostilities between Russia and Ukraine, just before planned peace talks, dampened risk-taking sentiment.

Stay updated on future trade policies and geopolitical developments to gauge potential volatility in the market.

Market Performance Overview

• Hong Kong’s Hang Seng: -2.3% (automakers like BYD [HK:1211] are feeling the pressure amid potential sector price wars)

• Japan’s Nikkei 225: -1.5%, largely influenced by a stronger yen

• Japan’s TOPIX: -1.0%

• Australia’s ASX 200: -0.2%

• Singapore’s Straits Times: -0.4%

• India’s Nifty 50 Futures: -0.3%, though India’s positive Q1 GDP may limit losses

Foreign Exchange Impact: Strengthening Yen

In the currency markets, Japan’s USD/JPY saw a decline of 0.7%, complicating matters for its exporters. A robust yen generally indicates a flight to safety from equities and increases demand for traditional stronghold currencies.