Markets across Asia-Pacific saw a mixed bag on Monday, as investors weighed the latest twist from the U.S. — President Trump pushing back the deadline on 50% tariffs targeting European Union imports. This unexpected delay seems to have stirred cautious optimism, but with undercurrents of uncertainty still swirling.
Some regional benchmarks climbed, while others slid, reflecting a market caught between relief and lingering questions about the broader trade outlook. Let’s unpack how the major indices and currencies fared and what might lie ahead.
South Korea Leads Gains Amid Tariff Delay Buzz
South Korea’s market was among the day’s brightest spots. The Kospi index jumped about 1.34%, continuing a solid run with gains totaling nearly 9.5% so far this year. Meanwhile, the smaller Kosdaq index rose around 1.43%, buoyed by positive sentiment across sectors.
Notably, big names in South Korea’s industrial and tech space made strong moves. Hyundai-Rotem, for instance, surged more than 11%, and Hyundai Engineering & Construction climbed roughly 7.6%. Tech giants followed suit: Samsung Electronics nudged up about 1.1%, SK Hynix added 0.5%, and battery makers LG Energy Solutions and Samsung SDI rose nearly 4% each.
This rally comes in the wake of President Trump postponing his planned 50% tariffs on EU goods, providing a breathing space that investors seemed eager to capitalize on.
Japan and Australia: Steady but Opposite Directions
Japan’s markets also had a decent day. The Nikkei 225 index climbed about 0.86%, with the broader Topix index adding around 0.46%. The bullish momentum in Japan aligns with the regional relief over delayed tariffs, and a strengthening yen helped stabilize investor confidence.
Meanwhile, Australia’s S&P/ASX 200 was flat, reflecting a more cautious stance. Despite the lull, some upbeat news popped up for Aussie stocks. Logistics software company WiseTech Global soared over 5.5% after announcing a $2.1 billion acquisition of U.S. cloud computing firm E2Open. The deal, backed by a hefty $3 billion debt facility, highlights the company’s aggressive global expansion plans.
China and Hong Kong Slump Despite Regional Optimism
Contrasting with the positive vibes elsewhere, China’s CSI 300 index dropped 0.73%, and Hong Kong’s Hang Seng Index fell by about 1%. These declines reveal underlying worries about China’s economic outlook and ongoing geopolitical tensions.
The dip in Chinese markets could also be linked to the weak offshore yuan, which inched up only slightly, as investors remain wary about U.S.-China trade dynamics and domestic policy uncertainties.
Currencies Rally as Dollar Weakens
The U.S. dollar took a hit across the board, sliding to its weakest point against a basket of currencies since December 2023. The U.S. dollar index dropped nearly 0.4%, pressured by mounting fears over ballooning U.S. debt and political wrangling over the debt ceiling.
This dip gave a boost to many Asian currencies. The Australian dollar jumped over 0.5%, hitting levels unseen since last December. The South Korean won strengthened modestly by about 0.23%, buoyed by positive trade talks and easing political concerns. Japan’s yen nudged up 0.17%, while the Singapore dollar and Thai baht both hit eight-month highs.
The mix of easing trade tensions and dollar weakness seems to be offering some comfort to regional economies vulnerable to currency swings.
Steel and Steelmakers: Nippon Steel Takes Center Stage
A standout story from Japan’s markets was Nippon Steel. Shares climbed as much as 7% after President Trump expressed support for the company’s $14.9 billion bid to acquire U.S. Steel. The planned merger promises to create roughly 70,000 jobs and add $14 billion to the U.S. economy, according to Trump’s comments on social media.
Investors cheered, pushing U.S. Steel’s shares up 21% in response. This endorsement feels like a big green light for the deal, which could reshape the steel industry’s landscape.
Market Snapshot Table
| Index | Change (%) | Current Level |
|---|---|---|
| Kospi (South Korea) | +1.34% | Around 2,500 |
| Nikkei 225 (Japan) | +0.86% | 37,458.54 |
| CSI 300 (China) | -0.73% | Approx. 4,000 |
| Hang Seng (Hong Kong) | -1.00% | 23,339.04 |
| S&P/ASX 200 (Australia) | 0.00% | Stable |
| Nifty 50 (India) | +0.78% | Above 24,800 |
Looking ahead, markets seem to be hanging on every twist and turn in trade relations. The delayed tariffs offer a temporary breather, but investors know that the bigger picture remains tangled with diplomatic hurdles and economic pressures. With U.S. markets closed Monday for Memorial Day, the global trading scene is taking a short pause — but the undercurrents will keep the tension alive when trading resumes.
Will the tariff extension buy enough time for meaningful talks? Or is this just another pause before the storm? Investors will be watching closely.
