Stock markets in Asia faced downward pressure on Tuesday as concerns over trade tensions between the United States and China impacted the region's economic outlook. Tokyo's Nikkei 225 dropped by 1.1% to 38,336.73 following a holiday on Monday. In Hong Kong, the Hang Seng index fell by 0.6% to 23,196.33, while the Shanghai Composite index dipped by 0.1% to 3,368.24. Australia's S&P/ASX 200 also experienced a decline of 0.7% to 8,252.50.
South Korea's Kospi lost 0.3% to 2,637.45 after the Bank of Korea announced a cut in its benchmark interest rate to 2.75% from 3%, marking its third cut in four meetings to support the slowing economy. Taiwan's Taiex fell by 1%, while the Sensex in India gained 0.4%.
The recent announcement by President Trump regarding tariff hikes on imports from Canada and Mexico, along with the additional 10% tariff on Chinese imports, has heightened concerns about escalating trade tensions. Major companies have expressed uncertainty over U.S. trade policies, leading to a decline in consumer sentiment and fears of potential trade wars.
In the U.S., stock markets saw mixed results on Monday, with the S&P 500 and Nasdaq composite experiencing slight declines. German stocks, on the other hand, showed a slight increase, with the DAX advancing by 0.6% following an election dominated by concerns about the country's economy.
Looking ahead, market watchers are closely monitoring updates on consumer confidence and inflation, as well as the upcoming profit report from Nvidia, a key player in the artificial intelligence industry. Oil prices also saw a slight increase, with U.S. benchmark crude oil rising to $71.22 per barrel and Brent crude climbing to $74.75 per barrel.
Overall, the global market remains cautious amid ongoing trade tensions and economic uncertainties, with investors closely watching for any developments that could impact market stability.
