Asian stocks are set for a cautious start on Monday, following Wall Street’s sharp losses on Friday as concerns over the U.S. economy and new tariff threats from President Donald Trump weighed on global markets. Investors are likely to seek safety in bonds, gold, and the U.S. dollar, with Japanese equity futures pointing to a 1.75% drop at the open.
The local economic calendar is light, with New Zealand retail sales and Singapore’s inflation data among key indicators. Additionally, Reserve Bank of New Zealand Deputy Governor Christian Hawkesby is scheduled to speak. Investors will also analyze Germany’s election results, which saw a win for opposition conservatives and a record showing for the far-right Alternative for Germany.
Weak economic data from the U.S. and Europe last week fueled market uncertainty. While signs of a U.S.-brokered Russia-Ukraine peace deal emerged over the weekend, they are unlikely to shift the overall bearish sentiment. U.S. Treasury yields fell, gold surged for an eighth consecutive week—its best run since 2020—and the dollar stabilized.
The Nasdaq slumped 2.5%, marking its worst week in three months, hinting at a potential end to U.S. stock market dominance. Meanwhile, the MSCI Asia ex-Japan index rose 1.5% for a sixth straight weekly gain, its strongest streak since late 2022. European equity funds recorded their biggest inflow since early 2022, and Hong Kong-listed Chinese tech stocks have soared 35% in six weeks.
However, with major indices in China, Japan, and India still in negative territory for the year, investors may consider capitalizing on weak exchange rates. President Xi Jinping’s recent meeting with business leaders boosted sentiment, but concerns over the yuan and potential U.S. trade restrictions linger.


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