April 22, 2025 – DailyForex.pk
Asian stock markets opened the week on a cautious note, with most indexes trading flat to lower on Tuesday. Investors remained uneasy following a sharp sell-off on Wall Street, triggered by renewed verbal attacks from U.S. President Donald Trump on Fed Chair Jerome Powell and growing concerns over escalating US-China trade tensions.
Despite a rebound in U.S. futures during Asian hours, sentiment across the region remained fragile ahead of key earnings and economic data releases.
🇺🇸 Wall Street Volatility Spills Into Asia as Trump Attacks Powell Again
Trump warned that the U.S. economy risks a recession if the Federal Reserve does not cut interest rates soon, reigniting concerns about political interference in monetary policy. His remarks sent U.S. stocks sharply lower on Monday, and that cautious tone echoed in Asian markets.
While S&P 500 futures rose 0.6% in Asian trade, aided by optimism ahead of earnings from Tesla (NASDAQ:TSLA) and others, traders remained wary.
🌏 China and Hong Kong Stocks Flat as Trade Tensions Deepen
- Shanghai Composite and CSI 300 moved in a tight range
- Hang Seng Index fell 0.5% after reopening from a long weekend
Chinese e-commerce giants JD.com and Meituan each fell over 6%, driven by concerns over intensifying competition in the food delivery sector.
Adding to the tension, China’s Commerce Ministry warned against bilateral trade deals with the U.S., accusing Washington of misusing tariffs. This comes after Trump hiked tariffs on Chinese goods to 145%, prompting a 125% retaliation from Beijing.
China’s stance remains firm, showing little willingness to re-engage in talks, and analysts fear further damage to China’s export-driven economy.
🇯🇵 Japan Stocks Flat as Tariffs and BOJ Policy Concerns Mount
- Nikkei 225 slipped 0.1%
- TOPIX Index remained unchanged
Japanese Prime Minister Shigeru Ishiba voiced serious concerns over the impact of Trump’s 25% tariffs on foreign automobiles, which could harm major Japanese exporters.
Ishiba also reaffirmed that Japan would not easily concede in trade negotiations set to resume soon with Washington.
Adding to the pressure, expectations for more interest rate hikes from the Bank of Japan (BOJ) weighed on sentiment. Inflation data for March exceeded forecasts, staying well above the BOJ’s target, raising speculation of a shift in monetary policy.
🌐 Asia-Pacific Roundup: Markets Range-Bound Ahead of Key Data
- Australia’s ASX 200 traded flat ahead of April PMI data due Wednesday
- South Korea’s KOSPI edged higher ahead of Q1 GDP data
- Singapore’s Straits Times Index jumped 1.2%, as investors sought refuge in banking stocks amid regional uncertainty
- India’s Nifty 50 futures pointed to a positive open, building on Monday’s 1% rally
📌 Outlook: Markets Watch US Earnings, Trade Talks, and Central Banks
With geopolitical and monetary policy risks lingering, Asian markets are expected to stay volatile this week. Investors are closely monitoring:
- First-quarter corporate earnings from U.S. tech giants
- U.S.-China trade developments and tariff rhetoric
- Monetary policy signals from the BOJ and Fed
- Key data releases including PMI figures from Asia-Pacific economies
📊 Stay tuned to www.dailyforex.pk for real-time updates on global markets, stock trends, and economic forecasts.