Asian stock markets are bracing for significant losses as weak performance on Wall Street and fresh US trade measures against China dampen investor sentiment. Australian shares opened lower, while futures indicate that Hong Kong and Tokyo benchmarks will fall around 2% at the start of trading. Shanghai stocks are also expected to drop, signalling a tough session across the region.
The downturn in Asian equities follows a poor session in US markets. The S&P 500 fell 0.5%, the Nasdaq 100 lost over 1%, and the Dow Jones Industrial Average fluctuated before closing with a modest gain of 0.1%. Technology stocks suffered the most, dragging down overall market performance as uncertainty clouds the artificial intelligence (AI) growth narrative.
The Nasdaq Composite slipped 1.2% on Monday, marking its second straight decline of over 1%. Companies such as Palantir, Constellation Energy, and PDD saw substantial losses, while Nike stood out as a top performer on the S&P 500, rising 4.9% after receiving an analyst upgrade. Investors remain cautious as AI-related stocks struggle to maintain momentum.
ALSO READWhat will impact US markets this week? 5 factors to watch Trump’s trade policies add to market pressure
Markets were further rattled after US President Donald Trump announced that tariffs on Canada and Mexico would proceed as scheduled next week. The S&P 500 finished the last hour of trading lower, reflecting heightened concerns over trade tensions. The index has now erased all post-inauguration gains and has declined 0.22% since Trump took office.
ALSO READWhy did US stock market fall? Worst day in 2025 Market overview
US Treasury Yields: The 10-year yield declined slightly to 4.390% from 4.419% on Friday.
Cryptocurrency: Bitcoin prices dipped below $94,000, dragging down crypto-related stocks, including Coinbase and Robinhood.
Gold Prices: The price of gold rose 0.4% to $2,947.90 per troy ounce, approaching the significant $3,000 milestone as it continues its record-breaking rally.
Asian Markets: Most Asian stocks ended lower, with Alibaba shares declining sharply in both Hong Kong and US markets following the announcement of its aggressive AI investment strategy. Meanwhile, Japanese markets remained closed for a public holiday.
Nike’s strong performance: Nike shares surged after receiving an analyst upgrade from Jefferies, with experts highlighting the company’s strategic focus on long-term expansion under its CEO’s leadership.
» Read More
