This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets mostly rose Monday as investors awaited clarity on U.S. President Donald Trump’s plans to impose tariffs this week on key trading partners.
U.S. Commerce Secretary Howard Lutnick reportedly told Fox News on Sunday that the exact tariff that will be levied against Mexico and Canada starting Tuesday is still “fluid,” which means it could be lower than the proposed 25%. He added that the additional 10% duty on China imports is “set.”
Japan’s benchmark Nikkei 225 was up 1.7% to close at 37,785.47, while the broader Topix index advanced 1.77% to close at 2,729.56.
Hong Kong’s Hang Seng index rose 0.44%, while Mainland China’s CSI 300 closed closed 0.04% lower at 3,888.47.
Taiwan’s Taiex index was down 1.29% to close at 22,756.25 after falling to its lowest level since early February.
Australia’s S&P/ASX 200 was trading 0.9% higher to close at 8,245.7.
The country’s S&P Global manufacturing purchasing manager’s index reading for February came in at 50.4, similar to the previous month’s 50.6 reading.
Elsewhere, China’s Caixin/S&P Global manufacturing purchasing manager’s index reading for February came in at 50.8, higher than the 50.3 estimated by Reuters and January’s 50.1 reading.
Investors will be keeping a watch on Indian stocks after the South Asian economy expanded 6.2% from a year ago in its third fiscal quarter ended December, recovering from a seven-quarter low. The print is higher than the revised 5.6% growth in the July to September quarter.
South Korean markets were closed for a public holiday.
In U.S., the three major averages closed higher on Friday, after a volatile week and monthly losses in February.
The S&P 500 added 1.59% on Friday to close at 5,954.50. The Dow Jones Industrial Average rose 601.41 points, or 1.39%, closing at 43,840.91. The Nasdaq Composite climbed 1.63% to settle at 18,847.28.
Friday’s trading session saw a brief pullback over the heightened geopolitical tensions after U.S. President Donald Trump and Ukraine President Volodymyr Zelenskyy clashed over differing views of how to end the Russia-Ukraine conflict.
Stocks rallied sharply into Friday’s close, partly because of index rebalancing and other technical-buying sources.
— CNBC’s Yun Li, Hakyung Kim and Alex Harring contributed to this report.
Strategist is bullish on China — and says it will outperform the U.S. over the next four years
Michael Gayed, founder of the U.S.-based Lead-Lag Media, has been bullish on Chinese equities since the first quarter of 2024 and believes it has potential to outperform U.S. equities.
“I think China’s markets is going to outperform the U.S. markets for the next four years and I don’t think it has anything to do with [U.S. President Donald] Trump. I think it has everything to do with starting valuation,” Gayed told CNBC’s “Squawk Box Asia” on Monday.
“I’d argue there’s tremendous underinvestment,” in China, Gayed said. He added that China has had “dead money for a very long time,” and has become a “source of anxiety and risk for financial advisors to even consider taking a contrarian bet for their own clients, investing in China funds.”
Looking ahead, the contrarian investor says there is “potential for a big move in China’s markets.”
— Amala Balakrishner
Taiwan’s Taiex index falls to lowest level in a month
Taiwan’s benchmark Taiex index fell as much as 1.9% to 22,615.02 on Monday, its lowest level in a month.
Declines were broad-based across industries and with losses led by the technology, utilities and academic and education services sectors.
Among the worst performers was Uniflex Technology, down 9.84%, and Phoenix Silicon International, which fell 9.23%.
— Amala Balakrishner
Shares in Seven & i Holdings rise nearly 5% after report says company will appoint a new president
Shares of Japan’s Seven & i Holdings rose as much as 4.62% Monday, following a report by Nikkei Asia that the company was looking to appoint Stephen Hayes Dacus as president.
Dacus, who is currently the lead independent director at Seven & i Holdings’ retail group, will be taking over from Ryuichi Isaka who is stepping down, the report added. The company will make a formal decision at a board meeting.
Seven & i Holdings said last week that its founding family had failed to secure the financing needed to buyout 7-Eleven. Canadian convenience store operator Alimentation Couche-Tard has also been eyeing the company.
— Amala Balakrishner, Nikkei Asia
China’s February factory activity expands at fastest pace in three months, private survey finds
China’s factory activity expanded its its fastest pace in three months to 50.8 in February, a private-sector survey showed on Monday.
The seasonally adjusted Caixin/S&P Global manufacturing purchasing managers index beat the Reuters poll forecast of 50.3.
This private survey reading followed the official manufacturing PMI released on Saturday, which indicated that China’s factory activity expanded last month at the fastest pace in three months.
The official PMI rose to 50.2 in February from 49.1 in January, according to the National Bureau of Statistics. The non-manufacturing PMI, which includes services and construction, also climbed to 50.4 from 50.2 in January.
Read the full story, here.
— Anniek Bao
JGB 30-year yields hit 17-year high, amid calls for higher rates
The yield on 30-year Japanese government bonds (JGBs) rose 0.003 percentage points to touch 2.362% — hitting a new 17-year high.
The yield on 10-year JGBs was hovering at around 1.4%, after hitting a 15-year high on Feb. 20.
Yields fall when bond prices rise.
This comes amid speculation of more interest rate hikes by the Japanese central bank.
Bank of Japan board member Hajime Takata had said last month that the Japanese central bank needs to raise interest rates further, as keeping them low at current levels could result in excessive risk-taking and higher inflation.
— Amala Balakrishner
Small caps underperform in February
Small-cap stocks are lagging behind the S&P 500.
The benchmark Russell 2000 Index is down 4.6% for the week and more than 5% in February. The small-cap index’s losses are more than double that of the S&P 500’s for the week and month.
— Hakyung Kim
