China Tech Gains Amid Trump Tariff Threats – Asia Market Wrap
Asian stocks pulled back after a five-day rally that pushed a regional gauge into overbought territory, as investors turned cautious amid increasing trade tensions and geopolitical uncertainty.
The MSCI Asia Pacific Index edged lower with stocks in Hong Kong and Japan declining after President Trump threatened to impose more tariffs of around 25%. Semiconductor shares advanced in China while equity index futures for Europe pointed to a lower open. A gauge of dollar strength and Treasuries were little changed ahead of the release of minutes of the Federal Reserve’s last meeting.
While investors remain cautious on the tariff front and talks to end the war in Ukraine, much of the focus in Asia is on whether a $1 trillion rally in Chinese stocks will be sustained. Advances in artificial intelligence by DeepSeek and President Xi’s meeting with tech companies, including Alibaba Group co-founder Jack Ma, have encouraged investors.
On tariffs, Trump’s announcement of new duties are expected to come as soon as April 2. His previously announced 25% tariffs on steel and aluminum are set to come in March. Tuesday’s comments are his most detailed yet in specifying other sectors that would be hit with fresh barriers.
In other markets, oil held advances on the possible postponement of OPEC+ supply increases and uncertainty around flows from Russia. Gold fluctuated and traded close to a new record high.
