Asian stocks surged on Monday, driven by hopes that China will unveil a massive stimulus package to counter US President Donald Trump’s looming tariffs on Chinese goods.¹ Investors are also watching for last-minute deals to avoid tariffs on Mexico, Canada, and China, set to take effect on Tuesday. Trump has confirmed 25% tariffs on products from Mexico and Canada, and an additional 10% on Chinese goods starting this week.
According to Stephen Innes, an analyst from SPI Asset Management, “Traders are on edge for last-minute negotiations to sidestep US tariffs.” Innes also noted that “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 US tariffs and keep China’s blistering 2024 equity rally alive.”
Asian markets saw significant gains, with Hong Kong’s Hang Seng and Japan’s Nikkei climbing over 1%, while Shanghai also rose. Chinese stocks were boosted by data showing manufacturing activity grew in February after a dip the previous month. Hong Kong’s market was also helped by the blockbuster IPO of Mixue Group, which saw its shares jump 40%. However, bitcoin slipped 1.3% on Asian markets after a 6% surge on Sunday.
