On Monday morning (3 February, 9:30 AM, GMT+7, Bangkok time), indices in Asia Pacific decreased across the region following the imposition of tariffs by the U.S. President Donald Trump on Canada, Mexico, and China over the weekend.
Trump signed off on tariffs of 25% on imports from Mexico and Canada, and 10% on Chinese goods. A 10% tariff on energy exports from Canada will take effect on Tuesday in the U.S.
In China, the Caixin/S&P Global manufacturing purchasing manager’s index in January was reported at 50.1, falling short of the 50.5 forecast from a Reuters poll.
Traders will also be analyzing the market repercussions of India’s Union Budget, which was unveiled over the weekend and included significant income tax cuts for the middle class. Additionally, the Indian government committed to lowering its fiscal deficit to 4.4% of GDP for the upcoming year starting on April 1, down from a revised 4.8% for the current year, among other initiatives.
Meanwhile, Chinese markets remained closed for the Lunar New Year holiday.
Japan’s NIKKEI plummeted by 2.42% to 38,614.01.
South Korea’s KOSPI slumped by 2.85% to 2,445.59.
Australia’s ASX 200 dropped by 1.67% to 8,390.
Hong Kong’s HSI declined by 2.09% to 19,802.41.
Meanwhile, the US stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) decreased by 0.75% to 44,544.66. NASDAQ contracted by 0.28% to 19,627.44, and S&P 500 lost 0.5% to 6,040.53. VIX surged by 3.72% to 16.43.
As for commodities, oil prices surged on Monday following the implementation of tariffs by U.S. President Donald Trump on Canada, Mexico, and China. Concerns over potential disruptions in crude supply from two major suppliers to the U.S. drove the spike, although the possibility of reduced fuel demand limited the gains. Brent futures rose 62 cents or 0.8% to $76.29 a barrel by 0042 GMT, and the West Texas Intermediate (WTI) increased $1.44 or 2% to $73.97 per barrel.
This morning, Brent futures gained 40 cents or 0.53% to $76.07 a barrel, and the WTI expanded $1.12 or 1.54% to $73.65 per barrel.
Meanwhile, gold futures edged down 0.85% to $2,811 per Troy ounce.
