Asian stocks traded mixed Monday as investors remained cautious ahead of new U.S. tariffs, while Chinese markets fell on rising deflation concerns.
Futures for major U.S. indices dropped during Asian trading hours after Wall Street ended the previous week lower. Investor sentiment weakened after President Donald Trump imposed 25% tariffs on Canadian and Mexican goods and raised Chinese tariffs to 20%. While he later delayed levies on Mexico and Canada by four weeks, he maintained a firm stance on China. U.S. Commerce Secretary Howard Lutnick reaffirmed the administration’s commitment to tariff pressure, citing concerns over fentanyl trade.
South Korea’s KOSPI rose 0.6%, and the Philippines’ PSEi gained 0.7%. Japan’s Nikkei 225 added 0.7%, while TOPIX edged up 0.2%. Australia’s S&P/ASX 200 increased 0.3%. In contrast, Indonesia’s Jakarta Composite dropped 0.8%, Thailand’s SET Index slipped 0.2%, and India’s Nifty 50 futures declined 0.4%.
Chinese stocks underperformed as economic data pointed to worsening deflation. The Shanghai Composite fell 0.6%, while the CSI 300 lost 0.8%. Hong Kong’s Hang Seng index plunged 1.7%.
China’s consumer price index (CPI) shrank 0.7% year-on-year in February, marking its first decline in 13 months and exceeding the expected 0.4% drop. The producer price index (PPI) fell 2.2%, slightly improving from January’s 2.3% decrease but missing the forecasted 2.0% drop.
These figures raise concerns about China’s economic slowdown as policymakers at the National People’s Congress discuss stimulus measures to revive growth. The deflationary trend may pressure Beijing to roll out stronger policies to support domestic demand and stabilize the economy.


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