Asian Stock Markets Mixed as Trump Tariffs Weigh, China Gains on AI Optimism

Asian stock markets showed a mixed performance at the start of the week, with most indices retreating following fresh tariff announcements from U.S. President Donald Trump. However, Chinese stocks continued their upward momentum, driven by optimism surrounding artificial intelligence (AI) and renewed stimulus hopes after weak inflation data.

U.S. Stock Futures Rise in Asia Trading Hours

During Monday’s Asia trading hours, U.S. stock index futures moved higher despite regional market uncertainty.

Asian Mining Stocks Decline Amid Trump’s Tariffs on Steel and Aluminum

Asian markets faced selling pressure after Trump imposed new 25% tariffs on all steel and aluminum imports. The move has intensified concerns about rising trade tensions and their potential ramifications for the global economy.

Adding to market jitters, China’s retaliatory tariffs on U.S. goods are set to take effect later today, further dampening investor sentiment.

South Korea’s KOSPI inched down 0.1%, with major steel producers experiencing significant losses.

China AI Stocks Continue to Surge as Markets Digest January Inflation Data

Despite escalating trade tensions between the world’s two largest economies, China’s AI sector, led by industry giants like DeepSeek, remained resilient, fueling investor confidence.

The Shanghai Composite Index climbed 0.4% on Monday, while the Shanghai Shenzhen CSI 300 index remained mostly flat. Meanwhile, Hong Kong’s Hang Seng Index saw a strong rally, surging 1.5%.

Chinese AI-related stocks listed in Hong Kong extended their bullish run, drawing increased investor interest.

China’s Inflation Data Highlights Economic Weakness, Stimulus Hopes Rise

Investors closely analyzed China’s latest inflation report. The consumer price index (CPI) showed moderate growth in January, while the producer price index (PPI) continued its consistent decline.

The data underscored persistent challenges in household spending and industrial activity—two crucial drivers of economic growth.

Markets are now watching for China’s next policy moves. The weak inflation figures could push Beijing to introduce further stimulus measures, such as interest rate cuts or increased infrastructure spending, to support its struggling economy.

Key Takeaways:

• Asian markets mixed as Trump’s steel and aluminum tariffs add pressure.

• China’s AI sector thrives, defying trade war concerns.

• Hong Kong’s Hang Seng surges 1.5%, driven by bullish AI stocks.

• China’s inflation report signals economic weakness, raising expectations for new stimulus measures.

With ongoing trade tensions and China’s economic policies under scrutiny, investors remain cautious about the region’s market trajectory.

(Sources: investing.om, reuters.com, ChatGPT)