A Chinese flag flies high over The Bund.
Liu Liqun | Corbis Documentary | Getty Images
Asia-Pacific markets climbed Monday as U.S. President Donald Trump paused tariffs on some consumer electronics, boosting risk sentiment.
Japan’s benchmark Nikkei 225 increased 1.34% while the broader Topix index rose 1.40%.
In South Korea, the Kospi index added 0.89% while the small-cap Kosdaq advanced 1.44%.
Meanwhile, Australia’s S&P/ASX 200 was up 0.71%.
Futures for Hong Kong’s Hang Seng index stood at 21,059 pointing to a stronger open compared to the HSI’s close of 20,914.69 last Friday.
Trump exempted smartphones and computers as well as other devices and components such as semiconductors from his new “reciprocal” tariffs, according to a U.S. Customs and Border Protection guidance issued late Friday.
However, Trump and Commerce Secretary Howard Lutnick suggested Sunday that the exemptions were not permanent, stirring up more uncertainty.
Trump said in a Truth Social post that these products were still “subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.'”
Several countries in the region are also preparing for trade negotiations with the U.S. this week.
Trump is engaging in negotiations with countries including Vietnam, India, South Korea and Japan, and is prioritizing existing trading partners that are strategic to countering China, according to two people close to the White House, reports from Politico show.
Japan’s top trade representative Akazawa Ryosei is slated to visit the U.S. this week for talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to local broadcaster NHK.
— CNBC’s Sean Conlon, Hakyung Kim and Pia Singh contributed to this report.
Spot gold edges down over uncertainty on tariff rollout
Spot gold edged down on Monday following uncertainties over U.S. President Donald Trump’s tariff rollout.
The precious metal had fallen 0.61% to trade at $3,217.23 per ounce as at 9.07 a.m. Singapore time, after recording its best day since October 2023 last week.
Spot gold
— Amala Balakrishner
Singapore dollar edges up after central bank eases monetary policy; Other Asian currencies fluctuate
The Singapore dollar edged higher Monday, following its central bank’s decision to ease monetary policy for the second straight time.
As at 8.45 a.m. local time, the Singapore dollar had strengthened marginally by 0.1% against the U.S. dollar to 1.3186.
The move also comes alongside a slump in the U.S. dollar, following U.S. President Donald Trump’s back-and-forth on tariffs.
The dollar index was last seen down 0.38% to 99.727.
Other Asian currencies fluctuated sharply on Monday.
Gains in the Japanese yen moderated to 0.19% against the dollar to 143.27, after the currency, which is traditionally perceived as a haven during periods of market tumult, hit its strongest level since September 2024 last week.
The Australian dollar also rose 0.16% against the dollar to 0.6296 while the Philippine peso rose 0.41% against the greenback to 56.995.
Meanwhile, the Thai baht lost 0.66% against the dollar to 33.55 while the Korean won fell 0.67% against the greenback to 1,428.79.
— Amala Balakrishner
Singapore eases monetary policy for a second straight time as city-state cuts growth forecast
Singapore on Monday eased its monetary policy for the second straight time, as the city-state posted a lower-than-expected GDP growth of 3.8% for the first quarter.
The Monetary Authority of Singapore had eased its policy stance in its January meeting, loosening policy for the first time since 2020.
The MAS said Monday it will reduce the rate of appreciation of its policy band known as the Singapore dollar nominal effective exchange rate, or S$NEER.
Read the full story, here.
— Lim Hui Jie
There’s still ‘mass uncertainty’ despite Trump tariff exemption being ‘right move,’ according to Dan Ives
While the Trump administration’s move to exempt smartphones, computers and semiconductors, among other electronic devices and components, from “reciprocal” tariffs may have been a win for Big Tech, the market could still be facing “mass uncertainty” around the president’s tariff policy, says Wedbush analyst Dan Ives.
“The White House made the right move in our view as tech leaders and the overall tech industry knew that if these tariffs went into effect it would essentially be a shut off valve for getting products to the US consumers,” Ives wrote in a note dated Sunday.
“[B]ut still there is mass uncertainty, chaos, and confusion about the next steps ahead with all focus on China tariff negotiations being front and center and any progress on this game of high stakes poker between Beijing and DC being crucial to the markets and the economy this week,” he continued.
— Sean Conlon