Most Asian stocks declined on Tuesday as renewed U.S. tariffs under Donald Trump rattled global markets, driving investors toward safe-haven assets like gold and bonds. A holiday in Japan further dampened trading activity, while U.S. stock futures also dipped in Asian hours.
With U.S. inflation data due on Wednesday, market participants remain cautious about the Federal Reserve’s next move on interest rates.
Market Overview: Asian Stocks Decline Amid Trade Tensions
The sell-off in Asian equities was triggered by:
Trump’s tariffs on aluminum and steel, reigniting concerns over U.S.-China trade relations.
Uncertainty over the Federal Reserve’s rate policy, with inflation data looming.
Profit-taking after a strong rally in Chinese and Hong Kong tech stocks.
? Key Index Movements
? Shanghai Composite: -0.5%? Shanghai Shenzhen CSI 300: -0.7%? Hang Seng Index: -0.7%? Philippines’ PSEi Composite: -1%? Singapore’s Straits Times Index: -0.5%? Jakarta Stock Exchange Composite Index: -0.6%
? Bucking the trend: South Korea’s KOSPI rose 0.5%, supported by strong corporate earnings.
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Flight to Safety: Gold & Bonds Gain as Risk Appetite Fades
As trade tensions resurfaced, investors flocked to defensive assets:
Gold prices climbed as a hedge against economic uncertainty.
Bond yields fell, reflecting a shift toward lower-risk investments.
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Australia: Consumer Sentiment Weak Despite Rate Cut Bets
Australia’s S&P/ASX 200 remained largely flat despite growing expectations of an interest rate cut.
A Westpac survey showed weak consumer sentiment in February, as households remain pressured by higher living costs.
The Reserve Bank of Australia (RBA) meets on February 17-18, with analysts expecting a 25 basis-point rate cut if inflation trends lower.
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Investor Takeaways: What’s Next?
Asian stocks remain under pressure as global trade risks resurface.
The U.S. inflation report on Wednesday will set the tone for the Federal Reserve’s rate policy.
Safe-haven assets like gold and bonds could see further inflows if risk sentiment worsens.
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