Asian markets kicked off the week with mostly positive momentum as investors braced for clarity on former U.S. President Donald Trump’s latest tariff maneuvers. While some indices posted healthy gains, others wobbled under the weight of uncertainty surrounding upcoming trade policies.
U.S. Commerce Secretary Howard Lutnick added to the suspense on Sunday, telling Fox News that the tariffs against Mexico and Canada, set to take effect Tuesday, are still “fluid.” That’s political code for “we have no idea what’s happening yet.” On the other hand, the additional 10% duty on Chinese imports is reportedly locked in.
In Japan, the Nikkei 225 climbed 1.7% to close at 37,785.47, while the broader Topix index rose 1.77% to finish at 2,729.56. Hong Kong’s Hang Seng Index ticked up 0.44%, though Mainland China’s CSI 300 barely budged, slipping 0.04% to 3,888.47.
Meanwhile, Taiwan’s Taiex index tumbled 1.29% to 22,756.25, its lowest level since early February. Australia’s S&P/ASX 200, however, rode a different wave, gaining 0.9% to close at 8,245.7, bolstered by a solid manufacturing PMI reading of 50.4.
Elsewhere, China’s Caixin/S&P Global manufacturing PMI for February surprised to the upside at 50.8, exceeding estimates of 50.3 and January’s 50.1 reading. Investors will also be keeping a close watch on Indian markets, as the country’s economy rebounded with 6.2% growth in the third fiscal quarter, bouncing back from a seven-quarter low.
South Korea, taking a breather, remained closed for a public holiday.
Across the Pacific, Wall Street ended last week on a high note despite geopolitical tensions. The S&P 500 surged 1.59% to 5,954.50, the Dow Jones Industrial Average climbed 601.41 points to 43,840.91, and the Nasdaq Composite gained 1.63% to 18,847.28. A last-minute rally helped offset concerns over the ongoing friction between Trump and Ukrainian President Volodymyr Zelenskyy on resolving the Russia-Ukraine conflict.
Opinion: The markets’ cautious optimism reflects a strange mix of faith and fear. On one hand, investors seem to believe that cooler heads will prevail and Trump’s tariff plans will land softly. On the other, history suggests that trade policies—especially ones announced via last-minute interviews—can turn unpredictable fast. If tariffs hit hard, markets could tumble. If they come in lower than expected, this rally might just have legs. For now, investors are dancing on a tightrope, hoping the winds don’t shift too suddenly
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