Asia-Pacific markets saw broad gains on Monday as investors awaited clarity on US President Donald Trump’s impending tariff measures while digesting stronger-than-expected manufacturing data from China.
Key indices across Japan, Hong Kong, and Australia climbed higher, while Taiwan’s Taiex index fell to a one-month low.
Meanwhile, Chinese bubble tea giant Mixue made a stellar trading debut in Hong Kong, soaring over 40%.
Asian markets rally amid tariff uncertainty
Markets in the Asia-Pacific region largely advanced as traders remained focused on Trump’s tariff plans, which are expected to take effect this week.
US Commerce Secretary Howard Lutnick signaled that the proposed 25% tariffs on Mexico and Canada could be adjusted, while an additional 10% duty on Chinese imports is set.
- Japan’s Nikkei 225 surged 1.36%, with the broader Topix index gaining 1.27%.
- Hong Kong’s Hang Seng index advanced 1.33%.
- Mainland China’s CSI300 climbed 0.44%.
- Australia’s S&P/ASX 200 rose 0.5% after data showed the country’s February manufacturing PMI stood at 50.4.
- Taiwan’s Taiex index dropped 1.68%, hitting its lowest level since early February.
- South Korean markets remained closed for a public holiday.
China’s factory activity expands
A private-sector survey revealed that China’s factory activity expanded at its quickest pace in three months, with the Caixin/S&P Global manufacturing PMI hitting 50.8 in February, surpassing expectations of 50.3.
This follows official PMI data released over the weekend, reinforcing signs of recovery in China’s manufacturing sector.
Taiwan’s Taiex index plunges to a one-month low
Taiwan’s Taiex index dropped as much as 1.9% to 22,615.02, marking its lowest level in a month.
The downturn was led by the technology, utilities, and education sectors. Uniflex Technology slid 9.84%, while Phoenix Silicon International fell 9.23%.
China’s Mixue surges 40%
China’s largest bubble tea chain Mixue soared over 40% on its first trading day in Hong Kong after a highly oversubscribed IPO.
Shares opened at HK$267 and climbed to HK$284 ($36.52), well above the IPO price of HK$202.5 per share.
The IPO attracted significant investor interest, being oversubscribed more than 5,200 times domestically and 35 times internationally.
Other Chinese bubble tea stocks declined following Mixue’s debut:
- Nayuki fell 6.2%
- Sichuan Baicha Baidao dropped 5.5%
- Guming slid 3.3%
Japan’s Seven & i Holdings gains nearly 5%
Shares of Seven & i Holdings jumped 4.62% on reports that the company is set to appoint Stephen Hayes Dacus as its new president, replacing Ryuichi Isaka.
The decision is expected to be formalized in an upcoming board meeting.
Japanese bond yields climb
Japan’s 30-year government bond yields surged to a 17-year high of 2.362%, while 10-year JGB yields hovered around 1.4%, near a 15-year peak.
The rise comes amid speculation that the Bank of Japan may tighten monetary policy further, with board member Hajime Takata advocating for additional rate hikes to curb excessive risk-taking and inflation.
Wall Street rebounds after volatile week
In the US, major stock indices ended higher on Friday after a turbulent week marked by geopolitical tensions and index rebalancing.
- S&P 500 gained 1.59% to close at 5,954.50.
- Dow Jones Industrial Average climbed 601.41 points (1.39%), closing at 43,840.91.
- Nasdaq Composite rose 1.63%, settling at 18,847.28.
Stocks initially dipped amid heightened tensions following a dispute between President Donald Trump and Ukraine’s President Volodymyr Zelenskyy over the Russia-Ukraine conflict but later rebounded due to technical buying and portfolio rebalancing.
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