Asian Markets A Sea Of Red

(RTTNews) - Asian stock markets are a sea of red on Monday, following the broadly negative cues from Wall Street on Friday, after news the US tariffs were put in place over the weekend, which led to concerns about higher inflation that will force the US Fed to put a hold on interest rate cuts for longer. Asian markets closed mostly higher on Friday.

White House press secretary Karoline Leavitt confirmed President Donald Trump's threatened tariffs will be levied against major U.S. trading partners beginning on Saturday February 1. Leavitt said the Trump administration will be implementing 25 percent tariffs on Mexico and Canada as well as a 10 percent tariff on China. Tariffs on oil and gas are likely by February 18. They also threatened 100% tariffs on BRICS nations over dollar replacement moves.

The Australian stock market is trading sharply lower on Monday, snapping the three-session winning streak, following the broadly negative cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling below the 8,400.00 level, with losses across most sectors led by mining and technology stocks.

The stocks were hammered after White House press secretary Karoline Leavitt confirmed President Donald Trump's threatened tariffs will be levied against major U.S. trading partners beginning Saturday, including Australia's major trading partner China.

The benchmark S&P/ASX 200 Index is losing 143.20 points or 1.68 percent to 8,389.10, after hitting a low of 8,353.90 earlier. The broader All Ordinaries Index is down 150.80 points or 1.72 percent to 8,638.90. Australian stocks closed notably higher on Friday.

Among the major miners, BHP Group is losing almost 2 percent, Fortescue Metals is sliding almost 5 percent, Rio Tinto is declining almost 3 percent and Mineral Resources is slipping more than 4 percent. Oil stocks are lower. Woodside Energy is losing more than 1 percent, Santos is down almost 1 percent, Origin Energy is slipping more than 2 percent and Beach energy is declining almost 2 percent.

Among tech stocks, Zip is sliding almost 5 percent, WiseTech Global is losing more than 2 percent and Appen are declining almost 7 percent. Xero is flat. Afterpay owner Block is in a trading halt.

Gold miners are mostly lower. Newmont, Gold Road Resources and Northern Star Resources are slipping almost 1 percent each, while Evolution Mining is losing more than 1 percent and Resolute Mining is declining almost 8 percent after chief executive Terry Holohan stepped down with immediate effect. Among the big four banks, Commonwealth Bank, ANZ Banking and Westpac are losing more than 1 percent each, while National Australia Bank is declining almost 2 percent.

In other news, shares in Westgold are tumbling more than 12 percent following the downward revision of its full-year production guidance after the ramp-up of two major mining assets was slower than planned.

Shares in Fisher & Paykel are slipping almost 8 percent after the medical devices company sounded a warning that US tariffs on Mexico will lead to investor's costs increasing in the 2026 financial year.

In economic news, the manufacturing sector in Australia moved back up into expansion territory in January, the latest survey from S&P Global revealed on Monday with a PMI score of 50.2. That's up from 47.8 in December and it moves above the boom-or-bust line of 50 that separates expansion from contraction.

Meanwhile, the total value of retail sales in Australia was down a seasonally adjusted 0.1 percent on month in December, the Australian Bureau of Statistics or ABS said on Monday, coming in at A$36.991 billion. That beat forecasts for a decline of 0.7 percent following the 0.8 percent increase in November. On a yearly basis, sales were up 4.6 percent. For the fourth quarter of 2024, retail sales were up 1.0 percent on quarter and 1.1 percent on year at A$105.820 billion.

The ABS also said total number of building permits issued in Australia was up a seasonally adjusted 0.7 percent on month in December, coming in at 15,174. That missed forecasts for an increase of 0.9 percent following the upwardly revised 3.4 percent decline in November (Originally -3.6 percent). On a yearly basis, building permits climbed 5.6 percent following the upwardly revised 7/1 percent jump in the previous month (originally 6.0 percent). The value of total building approved rose 3.5 percent to A$14.94 billion following a 6.6 percent rise in November.

In the currency market, the Aussie dollar is trading at $0.609 on Monday.

The Japanese stock market is sharply higher on Monday, snapping the three-session winning streak, following the broadly negative cues from Wall Street on Friday, with the Nikkei 225 falling more than 2 percent to be just above the 38,600 level, with weakness across most sectors led by index heavyweights, automakers and technology stocks.

The stocks were hammered after White House press secretary Karoline Leavitt confirmed President Donald Trump's threatened tariffs will be levied against major U.S. trading partners beginning Saturday, including China.

The benchmark Nikkei 225 Index closed the morning session at 38,612.96, down 959.53 points or 2.42 percent, after hitting a low of 38,454.38 earlier. Japanese shares ended slightly higher on Friday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is declining more than 2 percent. Among automakers, Honda is sliding almost 7 percent and Toyota is losing almost 5 percent.

In the tech space, Advantest and are losing more than 3 percent, Screen Holdings is slipping almost 3 percent and Tokyo Electron is declining more than 2 percent.

In the banking sector, Mitsubishi UFJ Financial is losing almost 2 percent, Mizuho Financial is down almost 1 percent and Sumitomo Mitsui Financial is down more than 2 percent.

The major exporters are mostly lower. Panasonic is declining more than 3 percent and Mitsubishi Electric is down more than 1 percent each, while Sony and Canon are losing almost 2 percent each.

Among the other major losers, Socionext is plummeting more than 13 percent and NH Foods id plunging more than 11 percent, while TDK, Mazda Motor, Nissan Motor and Seiko Epson are sliding almost 8 percent each. Denso is declining more than 7 percent, while Fuji Electric, M3 and Shin-Etsu Chemical are slipping more than 6 percent each. Komatsu and Renesas Electronics are losing almost 6 percent, while Subaru is down more than 5 percent.

Conversely, Sumitomo Pharma is skyrocketing more than 16 percent and Konami Group is soaring more than 10 percent, while Sumitomo Chemical and Alps Alpine are surging more than 5 percent each. ZOZO is advancing almost 4 percent.

In economic news, the manufacturing sector in Japan continued to contract in January, and at a faster pace, the latest survey from Jibun Bank revealed on Monday with a PMI score of 48.7. That's down from 49.6 in December, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the U.S. dollar is trading in the higher 155 yen-range on Monday.

Elsewhere in Asia, Taiwan and South Korea are plunging 3.8 and 2.9 percent, respectively, while New Zealand, Indonesia and Hong Kong are lower by between 1.4 and 1.7 percent each. Malaysia and Singapore are down 0.1 and 0.2 percent, respectively. China remains closed for Lunar New Year break.

On Wall Street, stocks came under pressure over the course of the trading day on Friday after showing a strong move to the upside early in the session. The major averages pulled back well off their early highs and into negative territory.

The major averages finished the day just off their lows of the session. The Dow slid 337.47 points or 0.8 percent to 44,544.66, the S&P 500 fell 30.64 points or 0.5 percent to 6,040.53 and the Nasdaq dipped 54.31 points or 0.3 percent to 19,627.44.

Meanwhile, the major European markets all moved modestly higher on the day. While the U.K.'s FTSE 100 Index rose by 0.3 percent, the French CAC 40 Index inched up by 0.1 percent and the German DAX Index closed just above the unchanged line.

Crude oil prices settled lower Friday amid uncertainty about implementation of Trump's tariff plans on Canada and Mexico, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for March fell $0.20 at $72.53 a barrel.