Asian stock markets delivered mixed performance on Monday as uncertainty surrounding President Donald Trump’s trade tariffs weighed on investor sentiment. Trading activity remained subdued due to public holidays in China and Japan.
Hong Kong and South Korea lead regional gains
Hong Kong’s Hang Seng Index outperformed regional peers, climbing 2.7% as bargain hunters stepped in following sharp losses last week. Technology and automobile stocks provided strong support, while export-focused companies benefited from expectations that the U.S. may adopt a less aggressive tariff stance.
Shares of Lenovo Group, BYD Co, and Shenzhou International Group Holdings rose between 1.8% and 4.5%, reflecting optimism among investors.
Attention in Hong Kong also turned to mainland China, which is set to reopen markets after the week-long Lunar New Year holiday. The festive period typically boosts domestic economic activity and consumer spending.
Artificial intelligence remained a key market theme, especially with NVIDIA Corporation scheduled to report earnings later this week. Nvidia’s results are widely seen as a barometer for global AI demand.
In South Korea, the KOSPI index surged more than 1% to reach a record high. The rally was driven largely by gains in major chipmakers, including Samsung Electronics and SK Hynix, amid growing expectations that both companies will benefit from rising AI-related demand for advanced memory chips.
Reports last week suggested Samsung could secure a significant deal with Nvidia to supply memory components for AI processors, further lifting investor confidence. Samsung shares reached a record high on Monday.
Broader Asia cautious amid tariff uncertainty
Across the wider region, markets traded mostly flat as investors weighed ongoing trade policy developments. On Friday, Wall Street closed higher after the U.S. Supreme Court ruled that a large portion of President Donald Trump’s tariffs could not be enacted under emergency economic powers.
However, President Donald Trump responded by introducing a 10% universal tariff under a different legal framework and later increasing it to 15%. The renewed tariff push added fresh uncertainty to global markets. S&P 500 futures fell 0.7% during Asian trading hours on Monday.
Reports over the weekend indicated that several countries were seeking renegotiation or greater clarity on tariff terms with Washington. Trump signaled he intends to proceed with his tariff strategy, keeping risk appetite fragile.
Safe-haven assets such as gold and the Japanese yen attracted stronger inflows as investors sought protection from potential volatility.
Elsewhere in Asia, Singapore’s Straits Times Index gained 0.4%, while Australia’s ASX 200 declined 0.5%. India’s Nifty 50 advanced 0.4% in early trade, supported by exporter stocks after the Supreme Court ruling removed a large share of tariffs previously affecting the country.
