Asia report: Markets mixed amid fresh Trump tariff uncertainty

(Sharecast News) - Asia-Pacific markets traded mixed on Monday as investors weighed renewed tariff uncertainty after US president Donald Trump said over the weekend that he would increase global tariffs to 15% from 10%.

The announcement followed a US Supreme Court ruling that struck down a broad swath of the president's trade agenda enacted under the International Emergency Economic Powers Act of 1977, adding to policy uncertainty across the region.

As Stephen Innes, managing partner at SPI Asset Management, put it: "What we are watching is first-order mechanics, not the grand macro endgame".

"This is the market's immediate reflex to a 15% Trump tariff levy dressed up as judicial drama."

He added: "The Supreme Court blocked Trump tariff hammer.

"The White House came back with a scalpel. Tariffs were not shelved. They were repositioned.

"And in markets, repositioned risk is still risk."

China and Japan remained closed for holidays, thinning liquidity across the region.

Markets mixed as investors watch for next tariff move

In Hong Kong, the Hang Seng Index climbed 2.53% to 27,081.91, led by gains in heavyweight stocks.

Zijin Mining Group rose 5.35%, Meituan advanced 5.26% and Semiconductor Manufacturing International Corporation gained 5.02%, as investors focused on domestic drivers even as global trade rhetoric intensified.

Innes noted that "across Asia, the reaction was more surgical than panicked," underscoring that the moves reflected repricing rather than broad-based risk aversion.

South Korea's Kospi 100 rose 0.69% to 6,645.80, hitting a fresh high as investors brushed off the latest tariff developments.

Samsung Electro-Mechanics surged 13.13%, while LG Electronics added 7.28% and Sam Yang Foods rose 7.22%.

Australian shares underperformed, with the S&P/ASX 200 falling 0.61% to 9,026.00.

Megaport tumbled 17.51%, Perenti Global dropped 13.81% and Austal declined 10.95%, as investors rotated away from select growth and industrial names.

In New Zealand, the S&P/NZX 50 gained 0.84% to 13,420.43.

Tourism Holdings jumped 10.83%, Pacific Edge rose 6.67% and Fisher & Paykel Healthcare advanced 3.83%.

Regional currencies end the day steady

Currency markets were relatively steady after early volatility.

The dollar was last down 0.09% on the yen to trade at JPY 154.91, while it rose 0.16% against the Aussie to AUD 1.4143 and gained 0.11% on the Kiwi to change hands at NZD 1.6751.

"The dollar softened in early Asia as traders digested the optics of policy uncertainty layered on top of policy persistence," Innes said, adding that "when the rulebook changes mid-innings, the first reaction is to lighten up on the currency that sits at the center of the storm."

Oil prices were slightly lower, with Brent crude futures last down 0.28% on ICE at $71.56 per barrel and the NYMEX quote for West Texas Intermediate falling 0.3% to $66.28, even as US-Iran talks resumed in Geneva.

Innes said energy traders were showing restraint, noting that "they are waiting for barrels to actually disappear."

Reporting by Josh White for Sharecast.com.