Asian Shares Slide On Trump's Tariff Threats, Mixed China Data

(RTTNews) - Asian stocks ended mostly lower on Monday as U.S. President Donald Trump's announcement of new tariffs on European countries dented demand for riskier assets. Regional losses, however, remained limited after China met its 5 percent growth mandate for 2025.

The EU is weighing additional countermeasures beyond the tariffs after Trump proposed new levies on eight countries over his plans to acquire Greenland.

Gold resumed gains and touched a new record high of $4,690.75 an ounce in early Asian trade as the dollar weakened against most of its major peers. Oil edged lower as tensions over Iran cooled.

Chinese shares fluctuated before ending modestly higher after the release of mixed economic data. The benchmark Shanghai Composite index edged up by 0.29 percent to 4,114.

The offshore yuan hit a fresh thirty-two-month high after official data showed China's economy expanded by 5 percent in 2025, meeting the government's annual growth target.

Industrial production growth for December beat expectations but retail sales and fixed asset investment numbers came in below estimates.

The unemployment rate came in at 5.1 percent last month, unchanged from the November reading.

China's new bank lending in 2025 slumped to a seven-year low, raising concerns over demand prospects in the country.

Hong Kong's Hang Seng index fell 1.05 percent to 26,563.90, extending losses to a third consecutive session amid selling across the board.

Japanese markets fell notably as the yen rallied on safe haven demand due to rising geopolitical tensions over Greenland.

Weak Japanese industrial output and core machinery data also weighed on sentiment and offset expectations of upcoming election-driven tax cuts.

The benchmark Nikkei 225 index ended down 0.65 percent at 53,583.57, extending losses for a third straight day. The broader Topix index finished marginally lower at 3,656.40. Semiconductor-related stocks and automakers led losses after recent sharp gains.

Seoul stocks bucked the weak regional trend to end sharply higher, extending their winning streak to a 12th day, led by gains in auto and technology shares. The Kospi average ended up 1.32 percent at 4,904.66, after hitting an intraday high of 4,917.37.

LG Electronics surged 8.6 percent, Hyundai Motor soared 16.2 percent and its affiliate Kia Corp jumped 12.2 percent as expectations for physical artificial intelligence (AI) shifted toward these companies.

Australian markets retreated from a more than two-month high hit in the previous session after the monthly inflation gauge, compiled by the Melbourne Institute, surged 1.0 percent month-on-month in December 2025, marking the fastest pace since December 2023.

The benchmark S&P/ASX 200 slipped 0.33 percent to 8,874.50, dragged down by banks. The broader All Ordinaries index ended down 0.34 percent at 9,194.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index tumbled 1 percent to 13,580.29 after Trump announced tariffs against fellow NATO members unless there's a deal for a "purchase of Greenland."

The tariffs will apply to Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland.

U.S. stocks ended a choppy session modestly lower on Friday amid worries over threats to the Fed's independence and heightened geopolitical risks in Iran and Greenland.

The Dow dipped 0.2 percent after President Trump suggested National Economic Council Director Kevin Hassett may not be his choice to become the next Federal Reserve chair, prompting traders to dial back expectations for rate cuts.

The tech-heavy Nasdaq Composite and the S&P 500 both finished marginally lower.