Asian stock markets climbed on Monday as investors anticipated a significant fiscal stimulus from China, aimed at countering the impact of new U.S. tariffs imposed by President Donald Trump. The surge comes ahead of China’s key parliamentary meeting, where officials are expected to introduce measures to support economic growth.
Market Rally Ahead of China’s Parliamentary Meeting
Asian indices opened higher as traders positioned themselves for potential policy announcements from China’s National People’s Congress (NPC), set to begin on Wednesday. Market analysts predict that China will unveil a substantial fiscal package to mitigate the economic drag caused by increased U.S. tariffs.
Hong Kong’s Hang Seng Index rose by 1.2%, while Japan’s Nikkei 225 climbed 1.0%. Shanghai’s Composite Index also saw a 0.5% uptick. Investors are closely monitoring these developments, particularly given the recent volatility triggered by geopolitical and economic uncertainties.
U.S. Tariffs Raise Global Concerns
President Trump confirmed the imposition of a 25% tariff on imports from Mexico and Canada, in addition to a 10% tariff on Chinese goods. The new trade barriers, set to take effect on Tuesday, have heightened tensions between major economies.
“Traders are on edge for last-minute negotiations to sidestep U.S. tariffs,” said Stephen Innes, an analyst at SPI Asset Management. “In Asia, all eyes are on China’s National People’s Congress, where traders are betting on a fiscal boost to counter the drag from U.S. tariffs and sustain China’s robust equity market performance in 2024.”
Cryptocurrency Market Sees Fluctuations
While equity markets posted gains, the cryptocurrency sector experienced mixed movements. Bitcoin slipped 1.3% in early Asian trading after a dramatic 6% surge on Sunday. The volatility followed Trump’s announcement that his administration is considering adding five digital assets to the U.S. strategic reserves.
Last week, Bitcoin dipped below $80,000 for the first time since November, triggering a broader sell-off in the cryptocurrency market. The digital currency sector remains highly reactive to regulatory and political developments.
Adding to the intrigue, Trump and former First Lady Melania Trump recently introduced their own meme coins, drawing criticism that they might be leveraging his political position for financial gain. Meanwhile, Tesla CEO Elon Musk, a known advocate of cryptocurrencies and a close Trump ally, has continued promoting digital assets through his social media platform, X.
Key Market Figures (As of 02:30 GMT)
- Tokyo – Nikkei 225: UP 1.0% at 37,516.30
- Hong Kong – Hang Seng Index: UP 1.2% at 23,223.83
- Shanghai – Composite: UP 0.5% at 3,335.01
- Euro/Dollar: UP at $1.0419 from $1.0384 on Friday
- Pound/Dollar: UP at $1.2612 from $1.2584
- Dollar/Yen: UP at 150.28 from 149.52 yen
- Euro/Pound: UP at 82.62 pence from 82.51 pence
- West Texas Intermediate (WTI) Crude: UP 1.12% at $70.54 per barrel
- Brent Crude: UP 1.09% at $73.60 per barrel
- New York – Dow Jones Industrial Average: UP 1.4% at 43,840.91 (close)
- London – FTSE 100: UP 0.6% at 8,809.74 (close)
As China’s parliamentary meeting unfolds, global investors will be keenly watching for any policy changes or stimulus measures that could influence market sentiment. The interplay between China’s fiscal policies and U.S. trade restrictions is expected to shape financial trends in the coming weeks.
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