Source: Sharecast
US commerce secretary Howard Lutnick reportedly told Fox News that the final tariff rate on Mexico and Canada remained uncertain, and could be lower than the proposed 25%, while confirming that the additional 10% duty on Chinese imports was fixed.
“Delays or adjustments [to the tariffs] may occur depending on trade negotiations, with a possible postponement until 1 April for further study,” noted Patrick Munnelly, market strategy partner at TickMill.
“Economic concerns deepened as disappointing US data pushed the Atlanta Fed GDPNow tracker from +2.3% to -1.5%.
“Tariffs are expected to hurt consumption, exacerbating an already weak outlook.”
Munnelly said January’s import spike, driven by tariff fears, inflated the trade deficit but could include non-monetary gold, not reflected in GDP.
“Markets remain sensitive to upcoming ISM data and payroll figures, with 73 basis points of Fed rate cuts priced in by January.
“Fed chair Powell’s remarks post-payroll release will be closely watched.”
Most markets rise as investors watch for tariff news
Japan’s Nikkei 225 gained 1.7% to close at 37,785.47, supported by strong performances from industrial and recruitment stocks.
IHI Corporation surged 7.75%, Recruit Holdings added 6.93%, and Mitsubishi Heavy Industries climbed 6.74%.
The broader Topix index advanced 1.77% to 2,729.56.
Mainland Chinese markets were mixed - the Shanghai Composite dipped 0.12% to 2,729.56, weighed down by sharp losses in Kangxin New Materials, Beijing Vantone Real Estate, and Guangdong Rongtai Industry, all of which fell around 10%.
In contrast, the Shenzhen Component edged up 0.36% to 10,649.59.
Hong Kong’s Hang Seng Index rose 0.28% to 23,006.27, with renewable energy and healthcare stocks leading the gains.
Xinyi Solar Holdings jumped 8.51%, JD Health International advanced 5.03%, and Alibaba Health Information Technology added 3.39%.
In Australia, the S&P/ASX 200 climbed 0.9% to 8,245.70, driven by strength in mining and travel stocks.
Mineral Resources rose 5.37%, Qantas Airways gained 4.94%, and Contact Energy increased 4.71%.
New Zealand’s market moved in the opposite direction, with the S&P/NZX 50 slipping 0.41% to 12,550.05.
EBOS Group and Infratil both declined 3.4%, while Vista Group International lost 2.36%.
South Korea’s markets were closed for the Independence Movement Day holiday.
In currency markets, the dollar was last down 0.09% on the yen to trade at JPY 150.50, as it lost 0.27% against the Aussie to AUD 1.6063, and retreated 0.16% from the Kiwi, changing hands at NZD 1.7835.
Oil prices eased, with Brent crude futures last down 0.32% on ICE to $72.58 per barrel, while the NYMEX quote for West Texas Intermediate fell 0.43% to $69.46.
China manufacturing sector shows strength, Australian activity stable
In economic news, China’s manufacturing sector showed its strongest expansion in three months, with the Caixin/S&P Global manufacturing purchasing managers’ index rising to 50.8 in February, surpassing market expectations of 50.3.
The private-sector reading aligned with the official manufacturing PMI released earlier, which climbed to 50.2 from January’s 49.1, marking a return to expansion.
The non-manufacturing PMI, covering services and construction, also improved slightly to 50.4 from 50.2.
In Australia, manufacturing activity remained stable, with the S&P Global manufacturing PMI registering 50.4 in February, little changed from the previous month’s 50.6.
Meanwhile, Japan’s government bond yields continued their upward trend.
The 30-year Japanese government bond yield rose to 2.362%, reaching a 17-year high, while the 10-year yield hovered around 1.4% after touching a 15-year peak in February.
It followed speculation that the Bank of Japan could raise interest rates further, with board member Hajime Takata warning last month that prolonged low rates could fuel excessive risk-taking and inflationary pressures.
Reporting by Josh White for Sharecast.com.