Asian stocks bounced back at the start of the month, tracking Wall Street’s strong finish last week. Investors remained cautious ahead of U.S. President Donald Trump’s upcoming trade tariff decision, with uncertainty over potential tariff rates hinting at softer measures.
Major U.S. stock indexes closed higher Friday after PCE inflation data met expectations. Meanwhile, Asian stocks, which suffered steep losses in the previous session, saw strong gains Monday. Japan’s Nikkei 225 surged 1.4%, while the TOPIX rose 1.2%. Hong Kong’s Hang Seng jumped 1.8%, Indonesia’s Jakarta Composite gained 2.2%, and Australia’s S&P/ASX 200 climbed 0.6%. South Korea’s markets were closed for a holiday.
China’s Shanghai Composite added 0.7%, with the CSI 300 rising 0.8%, supported by better-than-expected manufacturing PMI data. The Caixin manufacturing PMI hit a three-month high, signaling resilience in China’s economy amid past stimulus efforts.
Trump’s tariff decision remains a key market focus. While the U.S. previously imposed 10% additional tariffs on China, Trump is set to finalize tariff rates on Tuesday, leaving room for potential adjustments. U.S. Commerce Secretary Howard Lutnick hinted at a possible moderation in levies, easing investor concerns.
China’s highly anticipated “Two Sessions” meetings begin this week, with investors watching for economic policy signals. The National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) are expected to outline strategies to stabilize China’s economy amid slowing growth, weak consumer confidence, and a struggling property sector. Analysts predict China will maintain its 5.0% GDP target while detailing fiscal and monetary policies to support economic recovery.
Markets remain on edge as investors assess trade developments and China’s next policy moves.


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