Asian stock markets are cautious due to Trump's tariff concerns; Hong Kong and South Korea rise

Investing.com - Asian stock markets were mixed on Monday, as the high uncertainty surrounding U.S. President Donald Trump’s trade tariffs dampened risk appetite, while holidays in China and Japan kept trading volumes light.

The Hong Kong stock market performed well, driven by gains in local technology and automotive stocks, while the Korean stock market hit a record high, led by chip manufacturers (especially Samsung and SK Hynix).

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Asian markets followed some positive signals from Wall Street on Friday, when the U.S. Supreme Court ruled that most of Trump’s trade tariffs could not be enacted under laws aimed at responding to national economic emergencies, leading to a rally in U.S. stocks.

Trump then announced a 10% general tariff under another law, shortly thereafter raising the rate to 15%. S&P 500 futures declined 0.7% during Monday’s Asian trading session.

Hong Kong and Korea Rise on Tech Stocks

On Monday, Hong Kong’s Hang Seng Index was the best performer in Asia, rising 2.7% after a sharp decline last week, as bargain-hunting drove the index higher.

Technology, industrial, and automotive stocks were the best-performing sectors, with investors reportedly seeking more investment opportunities in artificial intelligence.

In Hong Kong, focus also remained on mainland China after the week-long Lunar New Year holiday. This holiday typically provides a significant boost to China’s economy, with mainland markets reopening on Tuesday.

AI remains a key focus, especially as industry bellwether NVIDIA (NASDAQ: NVDA) is set to report earnings later this week.

AI is also a major support for the Korean market, with the KOSPI index rising over 1% to hit a record high.

Chipmakers Samsung Electronics (KS: 005930) and SK Hynix are the biggest drivers of this rise, with increasing signs that both companies will benefit significantly from the demand for advanced storage chips driven by AI.

Last week, a report suggested Samsung is very likely to reach a major deal with NVIDIA to supply advanced storage chips for the latter’s cutting-edge AI processors. The stock hit a record high on Monday.

Asian Stocks Remain Nervous Amid Trump Tariff Turmoil

Overall, Asian stocks traded within a range from flat to lower, with low trading volumes due to holidays in China and Japan.

U.S. trade tariffs remain a key source of market uncertainty, especially after weekend reports indicated that multiple countries are seeking to renegotiate tariffs with the Trump administration or seek clarification.

Trump stated he has no intention of deviating from the tariff plan, which kept risk appetite generally weak. Safe-haven assets like gold and the yen attracted more capital flows.

Among Asian markets, the Singapore Straits Times Index rose 0.4%. The Australian ASX 200 declined 0.5%, while India Nifty 50 futures fell 0.4% in early trading.

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