Most Asian stocks fell sharply on Tuesday, spooked by renewed tariffs announced under President Donald Trump. These developments prompted a shift in investor sentiment toward safe-haven assets like gold and bonds. Coupled with a holiday in Japan, trading activity witnessed notable declines, while U.S. futures also reflected this bearish trend.

As the market anticipates U.S. inflation data due on Wednesday, caution prevails among investors regarding the Federal Reserve’s potential interest rate moves. Below is a summary of how these trade tensions have impacted major indices:

Market Overview: Asian Stocks Fall

• Trump’s reinstated tariffs on aluminum and steel are heightening trade concerns.
• Uncertainty surrounding the Federal Reserve’s rate policy looms large.
• The tech sector, particularly in China and Hong Kong, has seen profit-taking after an earlier rally.

Key Index Movements

• Shanghai Composite: -0.5%
• Shanghai Shenzhen CSI 300: -0.7%
• Hang Seng Index: -0.7%
• Philippines’ PSEi Composite: -1%
• Singapore’s Straits Times Index: -0.5%
• Jakarta Stock Exchange Composite Index: -0.6%
• Conversely, South Korea’s KOSPI rose 0.5% due to strong corporate earnings.

Flight to Safety: Gold and Bonds Gain

As trade tensions escalate, investors are flocking to defensive assets:

• Gold prices are climbing as a hedge against uncertainty.
• Bond yields are reflecting a shift toward lower-risk investments.

Investor Insights

Looking ahead, Asian stocks face mounting pressure amid ongoing trade uncertainties. Market participants await the upcoming U.S. inflation report, which will be pivotal for assessing the potential for interest rate changes. Safe-haven assets may continue to attract interest if sentiment deteriorates further.