Source: Sharecast
The region was influenced by Wall Street’s dismal performance last Friday, as economic data from the United States stoked fears of subdued growth.
“Asian equities took a hit on Monday as the US ramped up pressure on China with a new executive order from president Donald Trump, restricting Chinese investment in key US sectors deemed strategically sensitive,” noted SPI Asset Management managing partner Stephen Innes.
“This latest move adds fuel to the ongoing trade tensions and signals that US-China economic relations are set to become even more volatile.
“Meanwhile, across the globe, European equities kicked off on a stronger note, extending last week’s rally on optimism that Germany’s new government will embrace fiscal expansion to counteract the slowdown in Europe’s largest economy.”
Innes said markets were betting that Berlin would loosen the purse strings, providing much-needed economic support as the continent faced the “looming spectre” of a global trade war.
“While Asian risk sentiment is taking a hit from Washington’s latest moves, European investors are clinging to the idea that a policy shift in Germany could provide a fresh economic catalyst.
“Whether that optimism holds, however, depends on how much the new regime in Berlin is willing - and able - to deliver.”
Most markets start the new week in the red
In Japan, trading was halted due to the Emperor’s Birthday holiday, while Chinese markets saw muted declines.
The Shanghai Composite fell 0.18% to 3,373.03, and the Shenzhen Component slid 0.08% to 10,983.04.
Individual stocks such as Hangzhou Advance Gearbox Group, Zhejiang Daily Media Group, and Zhewen Interactive Group each dropped by about 10%.
Hong Kong’s Hang Seng Index also retreated by 0.58% to 23,341.61.
Key names including WuXi AppTec, WuXi Biologics, and Kuaishou Technology recorded significant losses, with declines ranging from roughly 5.6% to over 10%.
South Korea’s Kospi 100 mirrored this downturn, falling 0.58% to 2,635.69, as stocks like Lotte Chemical, Hyundai Electric Energy Systems, and Hyundai-Rotem lost over 5% each.
Australian markets bucked the regional trend slightly, with the S&P/ASX 200 edging up 0.14% to 8,308.20.
Shares in companies such as EVT, Nib Holdings, and APA Group enjoyed substantial gains of between 7% and nearly 13%.
In contrast, New Zealand’s S&P/NZX 50 declined 1.73% to 12,531.72, with firms like Summerset Group, Oceania Healthcare, and Sanford facing notable setbacks.
In currency markets, the dollar was last 0.23% stronger on the yen, trading at JPY 149.61, while it weakened 0.12% against the Aussie to AUD 1.5712, and retreated 0.03% from the Kiwi, changing hands at NZD 1.7412.
Oil prices were higher, with Brent crude futures last up 0.26% on ICE at $74.62 per barrel, and the NYMEX quote for West Texas Intermediate ahead 0.21% at $70.55.
Inflation eases in Singapore on back of new budget
In economic news, Singapore's inflation eased to 1.2% year-on-year in January, the lowest pace since February 2021.
It marked a decline from December’s revised rate of 1.5%, indicating a moderation in price pressures as the new year begins.
Core inflation, which excludes the volatile costs of private transport and accommodation, also cooled to 0.8% compared to a 1.8% rise in December.
The data release was the first major economic update since Singapore unveiled its 2025 budget on 18 February.
The city-state’s new financial plan promised additional support for households and businesses to mitigate cost of living pressures.
Reporting by Josh White for Sharecast.com.