Asian Markets Mixed as US Futures Edge Lower
Asian markets presented a mixed picture on Tuesday, with Chinese markets retreating after a strong rally on Wall Street. The rally on Wall Street was fueled by hopes that the Trump administration might take a more targeted approach to its planned tariffs on imported goods.
Japan's Nikkei 225 gained 0.3% to 37,733.22, while the Kospi in South Korea lost 0.5% to 2,617.11.
Hong Kong's Hang Seng sank 2.2% to 23,387.86 as heavy selling of tech-related shares continued to drag the benchmark lower.
Taiwan's Taiex gained 0.6% and the SET in Thailand lost 0.2%.
US futures edged lower and oil prices were little changed.
Stocks have been riding waves of hope and worry as President Donald Trump has announced and then amended plans on higher tariffs. A new round of tariffs is scheduled for April 2, but Trump has been somewhat vague about his plans.
Despite the gains on Monday, the benchmark S&P 500 has lost 1.9% so far this year out of concerns that a trade war could hinder economic growth and increase inflationary pressures.
Gains on Monday were broad, with 84% of stocks within the S&P 500 ending higher. Nearly every sector within the index rose.
Technology stocks helped lead the way. The stocks are among the most valuable on Wall Street and tend to have an outsized impact on the broader market's direction.
Tesla climbed 11.9% for the biggest gain among S&P 500 stocks. The electric vehicle maker is still down about 31% for the year.
Genetics testing company 23andme lost more than half its value after it announced over the weekend that it had initiated voluntary bankruptcy proceedings.
AZEK Co. jumped 17.3% after the building materials company announced Australia's James Hardie Industries will buy it in a cash-and-stock deal valued around $8.75 billion.
It's the second large deal in the sector in less than a week, with QXO Inc. announcing on Thursday that it was buying Beacon Roofing Supply Inc. in a deal worth about $11 billion, including debt.
Wall Street has several economic updates this week. Business group The Conference Board releases its consumer confidence survey for March on Tuesday. On Friday, the U.S. government releases the personal consumption expenditures price index for February, a measure of inflation closely watched by the Federal Reserve.
The Fed started cutting its benchmark interest rate at the end of 2024 but is cautious about inflation, which is just above its 2% goal. Those cuts came after the central bank raised interest rates in order to cool inflation from a two-decade high.
Lower interest rates can ease borrowing costs and help give the economy a boost, but they can also push inflation higher.
In other dealings early Tuesday, U.S. benchmark crude oil was unchanged at $69.11 per barrel. Brent crude, the international standard, also was unchanged, at $72.37 per barrel.
The U.S. dollar fell to 150.56 Japanese yen from 150.70 yen. The euro rose to $1.0808 from $1.0803.