Trump tariffs, Hang Seng Index, China stocks

Asia-Pacific markets opened higher, rebounding from previous session’s losses over U.S. President Donald Trump’s tariff policy and threats of even higher levies against China.

Australia’s S&P/ASX 200 added 0.18% at the open.

Japan’s Nikkei 225 rose 5.34% while the Topix gained 5.53%. South Korea’s Kospi rose 2.26% while the small-cap Kosdaq climbed 2.35%.

Hong Kong’s Hang Seng index futures were at 19,653, weaker than the HSI’s last close of 19,828.3.

Focus will be on Chinese stocks after Trump on Monday threatened additional 50% tariffs on China if Beijing did not lift its duties on U.S. imports. Hong Kong’s stock market led losses in the region on Monday, plummeting over 13% to log its steepest one-day decline since 1997, data from FactSet showed.

Trump stuck to his aggressive global tariffs strategy over the weekend, with an initial unilateral 10% tariff going into effect Saturday. Wall Street had been hoping for signs of progress in negotiations between the U.S. and other countries, with the ‘reciprocal’ tariffs set to begin on April 9.

“Asian equities suffered their worst rout in years, plunging to multi-year lows in a day marked by panic and uncertainty,” said Murthy Grandhi, company profiles analyst at data and analytics firm GlobalData.

“The renewed trade war fears have reignited concerns of a global economic slowdown, shattering already fragile investor confidence,” he said, adding that the path forward hinges on policy clarity and diplomatic engagement.

U.S. stock futures rose after the S&P 500 extended its losses for a third day following Trump’s tariffs announcement. Futures tied to the S&P 500 were about 1% higher, while Nasdaq-100 futures gained 1.1%. Futures linked to the Dow Jones Industrial Average jumped 476 points, or 1.2%.

Overnight in the U.S., the three major averages closed lower. The Dow Jones Industrial Average fell for a third day following President Donald Trump’s tariff rollout, dropping 0.91% to close at 37,965.60.  The Nasdaq Composite inched higher by 0.10% to settle at 15,603.26. The S&P 500 shed 0.23% to end at 5,062.25. 

— CNBC’s John Melloy, Hakyung Kim and Tanaya Macheel contributed to this report.