Asian Markets Slump on Monday Amid Trade War Concerns

Asian markets declined broadly today, with Japan’s Nikkei 225 plunging 4.05% to 35,617.56, entering a technical correction as trade war concerns hit exporters and semiconductor stocks. The index has fallen 12% from its December high, marking its worst quarterly performance since March 2020. A stronger yen pressured exporters, while semiconductor stocks tumbled—Renesas Electronics and Socionext both lost over 8%.

Hong Kong’s Hang Seng Index fell 1.31% to 23,119.58, with tech stocks leading the decline. Baidu dropped 3.64%, Xiaomi 3.62%, and Kuaishou 3.12%, while Tencent, Alibaba, and JD.com also posted losses. Despite the broader market downturn, Chinese banks outperformed, with China Construction Bank up 2.69% and Bank of China gaining 2.18%.

South Korea’s KOSPI slipped 3% to 2,481.12, dragged down by semiconductor and auto stocks, as investors weighed the impact of ongoing U.S. tariff concerns. Foreign and institutional investors were net sellers.

Mainland Chinese markets saw mixed performance. The Shanghai Composite Index edged down 0.46% to 3,335.75, with most sectors in the red. Solar energy, robotics, chemicals, and consumer stocks fell, while computing power, precious metals, and banking stocks outperformed.

Markets in India, Malaysia, and Singapore were closed for public holidays.