Asia report: Markets higher after two-way tariffs come into effect

In Japan, the Nikkei 225 was up 1.21% at 22,052.18, as the yen weakened 0.1% against the dollar to last trade at JPY 110.58.

The broader Topix was up 1.2% in Tokyo, led higher by the pharmaceuticals sector, which was followed closely by banks, electrical appliance makers and metal producers.

On the mainland, the Shanghai Composite surged 2.49% to 2,815.51, and the smaller, technology-heavy Shenzhen Composite powered 2.51% higher to 1,574.54.

South Korea’s Kospi rose 0.57% to 2,285.80, while the Hang Seng Index in Hong Kong was up 1.32% at 28,688.50.

Gains were relatively muted in Seoul, as a solid session for the blue-chip technology stocks was offset by a fall in manufacturing plays.

Samsung Electronics was ahead 1.56%, while Posco slid 2.4%.

In Hong Kong, Chinese technology star Xiaomi made its debut entrance on the stock market, following its HKD 17 initial public offering.

Sentiment in the region was buoyant on Monday, following Washington’s implementation of punitive tariffs on $34bn of Chinese imports on Friday, and Beijing’s rapid retaliation in applying tariffs on $34bn of American goods.

Officials in Beijing told media they had no choice in responding to US president Donald Trump’s belligerent trade policy, saying the White House had “launched the largest trade war in economic history”.

Markets in Asia were largely depressed leading up to the tariff deadline last Friday, as investors and market watches expressed concerns that tensions between the two largest economies on the planet were not looking likely to improve any time soon.

“Trade talk, which is now becoming trade action, is creating uncertainty and starting to hurt business,” noted Natixis Investment Managers chief market strategist.

“Disrupting global supply chains is a bigger risk than the dollar value of the tariffs themselves.”

Oil prices were higher, with Brent crude last up 0.82% to $77.75 per barrel, while West Texas Intermediate added 0.12% to $73.89.

In Australia, the S&P/ASX 200 managed gains of 0.22% to 6,286.00, with the hefty financials subindex and the resources sector leading gains.

Major miner BHP was ahead 2.14% in Sydney trading.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was the odd one out in the region, falling 0.2% from its record high close on Friday to end at 9,061.65.

It was led lower by subscription broadcaster Sky - no relation to its London-listed namesake - which slid 5.1%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.68% at AUD 1.3372, and the Kiwi advancing 0.14% to NZD 1.4605.