Asian Stock Markets Rebound After Recent Losses

Asian stock markets surged at the start of the month, tracking Wall Street’s strong performance from last week. Chinese stocks, in particular, saw gains, supported by robust manufacturing activity data.

Investors Monitor Trump’s Trade Tariff Decision

Market sentiment remained cautious as investors awaited U.S. President Donald Trump’s trade tariff decision, expected this week. However, uncertainty surrounding the final tariff rates suggested the possibility of more moderate measures.

On Friday, major U.S. stock indexes closed higher, following a key PCE inflation report that largely met expectations.

Asian Markets Recover Following Tech Sell-Off

Asian stocks had previously faced a sharp decline, largely driven by a sell-off in technology shares following Nvidia’s downturn on Wall Street. Additionally, investor confidence took a hit after Trump announced an additional 10% tariff on Chinese goods and reaffirmed plans for 25% levies on Mexico and Canada.

However, on Sunday, U.S. Commerce Secretary Howard Lutnick revealed that Trump would finalise the exact tariff levels on Tuesday, hinting at the possibility of softer trade measures. This announcement provided some relief to Asian markets, many of which had recorded monthly losses in February.

Chinese Stocks Gain on Strong Manufacturing Data

Chinese stock markets experienced notable gains, with the Shanghai Composite Index rising 0.7% and the CSI 300 Index climbing 0.8%.

Economic data released over the weekend indicated that China’s manufacturing activity outperformed expectations in February, benefiting from last year’s stimulus efforts. A private survey confirmed this trend on Monday, revealing that the Caixin Manufacturing PMI had reached a three-month high.

Investors Eye China’s Key ‘Two Sessions’ Meetings

Investors are now closely watching China’s annual ‘Two Sessions’ meetings, which begin this week. These crucial political gatherings—the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC)—set the stage for significant economic policy decisions.

With China facing sluggish economic growth, weakened consumer confidence, and ongoing troubles in the property sector, market participants are anticipating new stimulus measures aimed at stabilizing the economy.

Stay updated as global markets react to key economic developments and policy announcements from China and the U.S.

(Sources:investing.com, reuters.com)