Asian markets experienced mixed movements on Monday following the Easter weekend, as several markets remained closed. In the United States, futures were down as major technology companies prepared to announce their earnings amid ongoing market disruptions caused by President Donald Trump’s trade policies.
The trade war initiated by President Trump has introduced significant uncertainties into global markets. Recent reports suggest that China has halted imports of certain U.S. agricultural products and liquefied natural gas to avoid hefty tariffs imposed in response to U.S. tariffs on Chinese goods, which reach up to 145%. Economists express concern that sustained high tariffs could potentially trigger a recession.
In Asia, Japan’s Nikkei 225 index fell by 1% to 34,368.42, with Japanese automakers facing 25% tariffs on exports to the U.S. The Shanghai Composite index saw a slight increase of 0.3% to 3,244.44, while South Korea’s Kospi remained nearly unchanged at 2,484.23. Taiwan’s Taiex experienced a decline of 1.2%. Notably, markets in Hong Kong and Australia were closed.
In the U.S., Friday’s market closure followed a mixed performance on Thursday, with the Dow Jones Industrial Average dropping 1.3%, the S&P 500 rising slightly by 0.1%, and the Nasdaq composite declining by 0.1%. Early Monday, Treasury yields showed an upward trend.
This week marks the start of earnings season for the “Magnificent Seven” group of tech giants, including Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet, and Facebook parent Meta Platforms. Since President Trump’s inauguration, these companies have collectively seen a market value decline of $3.8 trillion, or 22%, as of April 20.
The trade tensions are disrupting supply chains globally, with Tesla, which manufactures electric vehicles in Shanghai, set to release its full financial report on Tuesday. The report is expected to confirm a 13% drop in first-quarter car sales compared to the previous year.
In commodity markets, U.S. benchmark crude oil dipped $1.20 to $62.81 per barrel, while Brent crude, the global standard, fell by the same amount to $66.76 per barrel. The U.S. dollar weakened to 141.08 Japanese yen, its lowest level since September, down from 141.80 yen. The euro appreciated to $1.1473 from $1.1404.
Concerns are mounting among economists that the recent decline in the dollar could signal a broader loss of confidence in the U.S. as a stable investment environment. In the bond market, the yield on the 10-year Treasury increased to 4.35% from 4.32% late last Thursday.
