Asian Shares Mostly Higher On Improved China Data

(RTTNews) - Asian stocks advanced on Monday as new PMI data suggested China's manufacturing had a solid start to 2025 and European leaders pledged to assemble a "coalition of the willing" to develop a plan for ending Ukraine's war with Russia.

On the trade front, speculation swirled over exactly what U.S. President Donald Trump has planned on new tariffs that will come into force from Tuesday.

U.S. Commerce Secretary Howard Lutnick said that Canada and Mexico had done a "reasonable job" securing their borders, but fentanyl continued to flow into the U.S.

That is a fluid situation and the President will determine whether to stick with the planned 25 percent level, Lutnick told the Fox News program, Sunday Morning Futures.

However, Trump is expected to raise tariffs on China on Tuesday as scheduled. Gold inched higher in Asian trade on dollar weakness after a slew of data signalled a weakening U.S. economy.

Oil ticked higher on improved China data and increasingly unclear prospects for peace in Ukraine.

China's Shanghai Composite index slipped 0.12 percent to 3,316.93 as upbeat factory activity data was offset by tariff worries.

China's top policymakers will gather in Beijing this week for the annual "two sessions", the country's biggest political event, where GDP growth and inflation targets are set to be unveiled alongside steps to boost domestic consumption.

Hong Kong's Hang Seng finished up 0.28 percent at 23,006.27 as reports emerged that China is considering retaliatory measures on U.S. agriculture and food products if the U.S. insists on pursuing its own path on tariffs.

South Korean markets were closed for a public holiday. Japanese markets rallied after long-term U.S. Treasury yields fell amid receding prospects of higher inflation.

Also, Japan's manufacturing sector showed slight improvement in February, with PMI finalized at 49.0, up from 48.7 in January.

The Nikkei average jumped 1.70 percent to 37,785.47 after plunging to a five-month low late last week. The broader Topix index settled 1.77 percent higher at 2,729.56.

Australian markets rose notably after data showed the country's manufacturing activity rose to its highest level in two years in February and a key inflation gauge declined in the month.

The benchmark S&P/ASX 200 climbed 0.90 percent to 8,245.70, with property developers, telcos and the tech sector leading the way. The broader All Ordinaries index closed up 0.89 percent at 8,478.80.

Across the Tasman, the benchmark S&P/NZX-50 index dipped 0.41 percent to 12,550.05.

U.S. stocks seesawed before ending sharply higher on Friday as signs of cooling inflation outweighed uncertainty around AI spending and geopolitical stability.

PCE inflation rose 2.5 percent year-on-year in January, meeting estimates and slowing on an annualized basis.

However, a measure of consumer spending posted the biggest monthly decline since February 2021, the goods trade deficit widened to a record high, and a model utilized by the Federal Reserve Bank of Atlanta projected an economic contraction in the first quarter of this year, signaling a slowdown in the world's largest economy.

The S&P 500 and the tech-heavy Nasdaq Composite both surged around 1.6 percent, while the Dow added 1.4 percent.