Asia-Pacific markets decline on Monday, taking cues from a negative lead on Wall Street, as investors prepared for new US tariffs this week. Meanwhile, investors assess data showing China’s manufacturing activity expanded at its fastest pace in a year in March, while services sector growth hit a three-month-high. Over the weekend, Trump stated he “couldn’t care less” if foreign automakers respond by raising prices. Japan ( NKY:IND ) fell 3.94% on Monday, falling below 36,000 to its lowest level in six months as investors digested mixed economic data. The Japanese yen strengthened past 149 per dollar on Monday, marking its second consecutive session of gains. Domestically, investors digested mixed economic data, with industrial production exceeding expectations in February, while retail sales fell short of forecasts . Separate data shows that construction orders in Japan fell 3.3% year-on-year to ¥1.280 billion in February 2025, following a 12.2% rise in the previous month. Japan's housing starts rose by 2.4% year-over-year in February 2025, rebounding from a 4.6% drop in the previous month and defying market estimates of a 1.4% fall. China ( SHCOMP ) fell 0.73% to below 3,345, while the Shenzhen Component dropped 0.9% to 10,510 on Monday, and the offshore yuan strengthened around 7.25 per dollar, as upbeat PMI data boosted market sentiment. Meanwhile, an upbeat Chinese PMI failed to offer support despite data showing factory activity at a one-year high and service growth at a three-month-high. Adding to the momentum, China plans to inject 500 billion yuan into four major state-owned banks to strengthen its financial sector, a move aimed at ensuring liquidity and boosting investor confidence amid global economic uncertainty. Meanwhile, South Korea, China, and Japan, agreed to collaborate on a free trade pact to boost regional trade as they brace for Trump’s tariff announcement. Hong Kong ( HSI ) fell 1.56% to 23,260 in early Monday trade, extending losses for a second session amid broad sector declines. India ( SENSEX ) market closed. Australia ( AS51 ) fell 1.74% to below 7,900 on Monday, hitting an over one-week low. The Australian dollar remained below $0.63 on Monday, hovering near a one-week low, as global trade uncertainties weighed on the currency. Australia’s private sector credit grew 0.5% month-over-month in February 2025, in line with market expectations and matching January’s increase. Investors also looked ahead to the Reserve Bank of Australia’s policy decision this week, with expectations that the central bank will hold interest rates steady at 4.1%. Meanwhile, Prime Minister Anthony Albanese recently announced a national election for May 3, launching a five-week campaign focused on tax cuts and cost-of-living relief. In the U.S., on Friday, all three major indexes ended in red , weighed down by rising inflation concerns and growing trade policy uncertainty. U.S. stock futures fell on Monday as investors braced for this week’s so-called ‘Liberation Day’: Dow -0.41% ; S&P 500 -0.73% ; Nasdaq -1.17% . Investors are also watching for this week’s monthly jobs report and a wave of corporate earnings releases, with companies like PVH, Restoration Hardware, and Constellation Brands set to report. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan's Feb industrial production exceeds expectations, retail sales fall short of forecasts China’s factory activity expands at fastest pace in March, services sector growth hits three-month high Australia’s monthly CPI eased to three-month low of 2.4% in February Australia government unveils income tax cuts for 2026-27 Japan’s manufacturing downturn extends to ninth month; services activity turns negative
