Global Stock Markets Mixed as Investors Brace for U.S. Tariffs

Asian stock markets showed mixed performance on Monday as investors remained on edge ahead of impending U.S. tariffs from President Donald Trump. Meanwhile, Chinese markets took a hit following economic data that signaled persistent deflationary pressures.

U.S. Stock Futures Drop After Wall Street Selloff

Futures for major U.S. stock indices declined during Asian trading hours, reflecting lingering concerns after Wall Street ended the previous week sharply lower. Market sentiment remains fragile amid ongoing trade uncertainty.

Investor Caution Grows Amid U.S. Tariff Concerns

Last week, President Trump escalated trade tensions by imposing a 25% tariff on Canadian and Mexican imports while raising levies on Chinese goods to 20%. However, he later adjusted his stance, announcing a four-week delay for most Mexican and Canadian tariffs, though he maintained a firm position on China.

Adding to the uncertainty, U.S. Commerce Secretary Howard Lutnick reiterated on NBC’s Meet the Press that Trump remains committed to applying tariff pressure on Mexico, Canada, and China due to their role in fentanyl distribution.

China’s Inflation Slows More Than Expected in February

Economic data released on Sunday revealed worsening deflationary trends in China, with both consumer and producer prices declining more than anticipated due to weak domestic demand.

The Consumer Price Index (CPI) fell by 0.7% year-on-year, marking its first drop in 13 months and exceeding economists’ expectations of a 0.4% decrease. Meanwhile, the Producer Price Index (PPI) dropped by 2.2% year-on-year, slightly improving from January’s 2.3% contraction but still missing the forecasted 2.0% decline.

These deflationary pressures coincide with the ongoing National People's Congress (NPC), where policymakers are exploring strategies to stimulate economic growth. The latest economic data is likely to intensify discussions on introducing stronger stimulus measures to counter weak inflation and support domestic demand.

Market Outlook: Heightened Volatility Ahead?

With mounting concerns over trade policies and economic stability, global markets are expected to remain volatile. Investors will be closely monitoring developments in U.S.-China trade relations and potential policy responses from Beijing as the economic outlook remains uncertain.

(Sources: investing.com, reuters.com)