Most Asian equities traded in a flat-to-low range on Tuesday, weighed down by lingering concerns around U.S. trade policy and renewed pressure on central banks globally. Investor sentiment remains fragile following U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and warnings of a recession without immediate rate cuts.
Wall Street Weakness Spills into Asia
Wall Street’s losses on Monday, driven by Trump’s comments, cast a shadow over Asian trading. However, U.S. stock index futures hinted at a potential rebound, with S&P 500 Futures up 0.6% in early Asian trade. All eyes are now on upcoming Q1 earnings, with Tesla Inc (NASDAQ:TSLA) set to report later today.
China, Hong Kong Markets Under Pressure
China’s CSI 300 and Shanghai Composite indices moved sideways, while Hong Kong’s Hang Seng dropped 0.5% post-holiday. Major e-commerce stocks like JD.com and Meituan tumbled over 6% amid intensifying competition in food delivery.
Adding to the tension, China’s Commerce Ministry warned nations against signing trade deals with the U.S. at China’s expense, accusing Washington of tariff abuse. This follows Trump’s hike of tariffs on Chinese goods to 145%, prompting China’s retaliation with a 125% levy.
Japan Faces Dual Pressures
In Japan, the Nikkei 225 fell 0.1% while TOPIX remained flat. A strengthening yen, driven by safe-haven demand, pressured export-heavy sectors. Meanwhile, Prime Minister Shigeru Ishiba expressed “grave concern” over Trump’s proposed 25% tariff on foreign cars, potentially impacting Japan’s largest automakers.
The Bank of Japan’s policy outlook remains in focus as consumer inflation in March stayed above target. Markets are also watching Japan’s PMI data due Wednesday for signals on economic momentum.

For Deeper Market Analysis:

? Sector Historical Data – Analyze historical performance of sectors under stress from trade or monetary policies.

? Earnings Calendar – Track Tesla and other major earnings this week to anticipate market reactions.