Asian stocks traded mostly lower on Tuesday as markets digested renewed U.S. political and economic uncertainty. Investor sentiment was shaken by President Donald Trump’s harsh criticism of Federal Reserve Chair Jerome Powell, warning of a potential recession if interest rates aren’t cut. Wall Street tumbled on Monday, dragging Asian equities down, although S&P 500 futures rose 0.6% in early Asian trade on hopes of a rebound.
Caution remained high ahead of key Q1 earnings, with Tesla set to report later in the day. The ongoing U.S.-China trade war also weighed on sentiment, as Beijing warned other nations against trade deals with Washington that could harm China’s interests. The warning followed Trump’s tariff hike on Chinese goods to 145%, prompting China to retaliate with a 125% levy on U.S. imports. China’s CSI 300 and Shanghai Composite remained flat, while Hong Kong’s Hang Seng dropped 0.5%. JD.com and Meituan shares plunged over 6% on signs of intensifying food delivery competition.
Japan’s Nikkei 225 slipped 0.1% as exporters struggled with a seven-month-high yen. Prime Minister Shigeru Ishiba expressed concerns over Trump’s 25% tariffs on foreign cars, which threaten Japan’s automotive sector. Investors also eyed possible rate hikes from the Bank of Japan after March inflation remained elevated.
Australia’s ASX 200 stayed flat ahead of PMI data, while South Korea’s KOSPI saw minor gains before its GDP release. Singapore’s Straits Times Index outperformed, climbing 1.2% as investors sought safety in bank stocks. India’s Nifty 50 futures pointed to further gains after a strong previous session.
Overall, uncertainty surrounding global trade policies and monetary tightening kept Asian markets in a tight trading range.


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