Most stock markets in the Asia-Pacific region saw declines on Monday, as participants evaluated potential risks following tariff threats from the Trump administration directed at multiple European nations over the weekend. Uncertainty ahead of upcoming economic releases from China also weighed on sentiment.
Japan’s Nikkei 225 fell by 1.42% to 53,169.36 points, while Hong Kong’s Hang Seng Index was down 0.85% to 26,617.45 points, while the Shanghai Composite gained 0.45% to 4,120.43 points. Australia’s ASX 200 dipped 0.48% to 8,861.40 points. In contrast, South Korea’s Kospi gained 0.42% to 4,861.27 points.
Investor caution heightened after U.S. President Donald Trump announced new levies on goods from eight NATO member nations, contingent on a deal for the U.S. to secure control of Greenland, which belongs to Denmark. The tariffs are set at 10% on affected goods beginning February 1, with an increase to 25% scheduled for June 1 if no agreement is reached.
Tariffs already apply at an average of 15% to products entering the United States from the targeted European Union nations and around 10% on goods from the United Kingdom, although these vary across different sectors. European authorities may respond in kind, with an EU decision on countermeasures expected at a meeting on Thursday.
In broader market action, U.S. stocks ended last Friday modestly weaker, as the S&P 500 slipped 0.1%, the Dow Jones Industrial Average lost 0.2%, and the Nasdaq Composite edged 0.1% lower.
In commodities, oil prices finished higher last Friday, with Brent crude closing at $64.13 per barrel, up 0.58%, and U.S. West Texas Intermediate settling at $59.44, a 0.42% increase. However, both benchmarks edged down by 0.03% in the early Asian session Monday.
Additionally, spot gold rose sharply, climbing 1.66% to reach $4,671, setting a new record.
