Stocks in Asia saw gains on Monday, although much of the early progress was lost after U.S. President Donald Trump announced that he would proceed with additional tariffs despite concerns about their potential impact on the economy and financial markets.
During a conversation with reporters on Air Force One, Trump confirmed his intention to move forward with planned tariff increases on April 2, regardless of recent market fluctuations.
Chinese markets saw an uptick after the government reported better-than-expected factory data.
Later in the day, Chinese officials were set to provide updates on their efforts to encourage consumer spending, which is viewed as crucial for revitalizing the economy. Many economists have called for broad, structural reforms to boost consumer confidence and increase purchasing power.
Hong Kong’s Hang Seng index gained 0.8%, reaching 21,144.86, while the Shanghai Composite index rose 0.2%, settling at 3,426.13.
China’s industrial output increased by nearly 6% in the first two months of the year compared to the same period last year, while retail sales saw a 4% rise, according to government data released on Monday. However, officials noted ongoing struggles in the property market, with home prices declining and real estate investment dropping almost 10% from the previous year.
In Tokyo, the Nikkei 225 index rose by 0.9%, reaching 37,396.52, while the Kospi in Seoul surged 1.7%, closing at 2,610.69.
Australia’s S&P/ASX 200 increased by 0.8%, finishing at 7,854.10, and Taiwan’s Taiex climbed 0.7%. Bangkok’s SET saw a modest gain of less than 0.1%.
On Friday, Wall Street rebounded, but not enough to prevent the U.S. market from marking its fourth consecutive losing week, its longest streak since August.
The S&P 500 rose 2.1%, recovering slightly after dropping more than 10% from its record high, signaling its first “correction” since 2023. It ended the day at 5,638.94.
The U.S. stock market has experienced rapid declines since reaching a peak less than a month ago. The last time the index saw such a large jump was the day after President Donald Trump’s election, when Wall Street focused on the potential positive impacts of his presidency.
The Dow Jones Industrial Average gained 1.7%, closing at 41,488.19, while the Nasdaq Composite surged 2.6%, finishing at 17,754.09.
Ulta Beauty saw a significant 13.7% increase after the beauty retailer reported better-than-expected profits for the latest quarter.
Gains in Big Tech and artificial intelligence stocks also helped boost the market. These stocks, which had been under pressure in the recent sell-off due to concerns over inflated prices during the AI frenzy, saw some recovery.
Nvidia rose 5.3%, reducing its 2025 loss to less than 10%, while Apple climbed 1.8%, easing its weekly loss that had been on track to be its worst since the 2020 COVID crash.
The market also received a boost from the Senate’s actions to avert a potential partial U.S. government shutdown.
However, the biggest uncertainty remains President Trump’s escalating trade war. The key concern is how much economic strain Trump is willing to impose through tariffs and other policies in pursuit of reshaping the country and the global landscape. Trump has expressed intentions to bring manufacturing jobs back to the U.S. and reduce the size of the federal workforce, alongside other significant changes.
Stock prices may be nearing the end of their adjustment period as they factor in the tariffs set to take effect in April. However, concerns about the potential economic impact of federal spending cuts are expected to persist for some time.
U.S. households and businesses have already reported declines in confidence due to the uncertainty caused by President Trump’s fluctuating tariff announcements and other policies. This has led to fears of reduced consumer spending, which could weaken the economy.
In early trading on Monday, U.S. benchmark crude oil rose by 48 cents, reaching $67.66 per barrel on the New York Mercantile Exchange. Brent crude, the international standard, increased by 49 cents to $71.07 per barrel.
The U.S. dollar strengthened slightly, reaching 148.93 Japanese yen, up from 148.81 yen. The euro edged down to $1.0880 from $1.0882.