Asian markets closed mixed on Monday, as investors reacted to renewed tariff threats from US President Donald Trump.
Trump warned that a 25 percent levy could be imposed by the end of June on smartphones made outside the US by companies including Apple and Samsung, unless production is shifted domestically
Despite the heightened rhetoric, market nerves were somewhat calmed by a delay in tariffs targeting the European Union.
Trump announced he would postpone 50 percent tariffs on EU imports until July 9, backing off from an earlier warning of a June 1 start.
Hong Kong stock slips as EV stocks crash
Hong Kong stocks declined from recent highs as weak corporate earnings and China’s economic headwinds weighed on sentiment.
The Hang Seng Index fell 1.4 percent to 23,282.33, while the Hang Seng Tech Index lost 1.7 percent.
China’s CSI 300 slipped 0.6 percent, and the Shanghai Composite edged down 0.1 percent.
Electric-vehicle makers led losses following reports that BYD would cut prices on 22 models, triggering concerns of deepening margin pressure from an intensifying price war.
BYD shares slid 8.6 percent to HK$425.20. Geely Auto tumbled 9.5 percent, and Li Auto dropped 3.2 percent.
The Chinese yuan strengthened to near a seven-month high after the central bank adjusted the midpoint fixing upward.
Japan stocks jump higher
Japanese equities rose on optimism ahead of planned trade negotiations in Washington, with chief negotiator Ryosei Akazawa preparing for a third round of talks.
The Nikkei added 1 percent to 37,531.53, while the broader Topix gained 0.6 percent.
Shares of Nippon Steel rose 2.1 percent following U.S. approval of its investment in US Steel.
Other regional markets
South Korean shares surged as technology and battery stocks led a strong rebound.
The Kospi jumped 2.02 percent to 2,644.40, marking its highest close since late February.
Samsung Electronics rose 0.9 percent and SK Hynix added 1.5 percent.
Australian markets ended little changed, as losses in banking stocks offset gains in mining and tech.
The S&P/ASX 200 settled flat.
The Indian stock market ended Monday’s session on a firm footing, with both benchmark indices closing in the green.
The Sensex rose 455.37 points, or 0.56%, to settle at 82,176.45, while the Nifty 50 advanced 148 points, or 0.60%, to finish at 25,001.15.
Investor sentiment was buoyed by buying in auto, FMCG, and IT stocks. The Nifty Bank index also participated in the rally, ending 0.31% higher at 55,572.
US stocks on Friday
In the US, stocks declined on Friday following Trump’s twin tariff threats targeting the EU and Apple.
Apple shares slid 3 percent. The Nasdaq dropped 1 percent, while the S&P 500 and Dow fell 0.7 percent and 0.6 percent, respectively.
All three major indexes logged weekly losses of over 2.5 percent.
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