Asian Stock Markets Mixed as Australian Shares Dip on Weak Westpac Earnings, Trade Talk Uncertainty Lingers

Asian stock markets started the week on a cautious note, with Australia’s S&P/ASX 200 falling 0.7% on Monday after Westpac Banking Corp (ASX:WBC) reported a weaker-than-expected performance. Most other markets in the region were closed for holidays, and investors appeared reluctant to take strong positions ahead of key U.S.-China trade updates and the upcoming Federal Reserve policy meeting.

Westpac Earnings Weigh on ASX 200

Australian banking stocks dragged the broader market lower after Westpac, the nation’s second-largest mortgage lender, posted a 1% decline in net profit for the first half. Tighter lending margins and trade-related economic uncertainty were cited as major factors.

Westpac shares fell over 3%
The ASX 200 Financials Index dropped 1.6%

Westpac also warned that global trade tensions, particularly stemming from U.S. tariff policies, have clouded its economic outlook. Meanwhile, the Australian Labor Party’s re-election added a layer of political stability amid volatile housing markets and global trade concerns.

Asian Markets Quiet Amid Holidays and Trade Uncertainty

With Japan, China, Hong Kong, and South Korea observing public holidays, regional trading volumes were notably thin. Elsewhere in Asia:

Singapore’s Straits Times Index slipped 0.1%
India’s Nifty 50 futures edged down 0.1% amid ongoing tensions with Pakistan
Philippines’ PSEi Composite dropped 0.3%
Malaysia’s KLCI gained 0.2%
Indonesia’s Jakarta Composite Index rose 0.4%

Investors Await Clarity on U.S.-China Trade Talks

Markets remain cautious as China stated Friday that it’s open to evaluating trade negotiations with the U.S. However, Beijing emphasized that any talks must include the removal of unilateral tariffs.

Recent media reports also revealed that the Trump administration has reached out to restart trade discussions, which has helped ease fears of an immediate escalation in trade tensions.

Still, investors are looking for clear signals or official confirmations before shifting sentiment decisively.

Key Chinese Economic Data Ahead

Traders are bracing for a critical week of Chinese economic indicators:

Caixin Services PMI (April) – due Tuesday
China’s Trade Balance and CPI (April) – due Friday

According to ING analysts, Chinese exports to the U.S. are expected to post double-digit declines, highlighting the lingering effects of Trump-era tariffs.

Conclusion:
Asian markets remain in a holding pattern as traders digest mixed corporate earnings, muted geopolitical signals, and uncertainty around global trade dynamics. With U.S. nonfarm payrolls and China’s economic data due later this week, volatility may increase across risk assets, including equities and currencies.

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Hamza Shah