(RTTNews) – Asian stocks ended mixed in cautious trade on Monday, with Australian markets closed for Australia Day and Indian stock exchanges closed for Republic Day.
A cautious undertone prevailed amid ongoing uncertainty over U.S. tariff policies and ahead of the Fed’s policy decision and big tech earnings due this week.
Trade concerns were heightened after U.S. President Donald Trump threatened to impose a 100 percent tariff on goods from Canada over its proposed trade deal with China.
Canadian Prime Minister Mark Carney responded by saying his country has no intention of pursuing such a deal.
Worries about a U.S. government shutdown also added to investor anxiety after Democratic lawmakers threatened to block a Department of Homeland Security funding bill following controversy over federal law enforcement actions.
Elsewhere in Iran, authorities unveiled a new billboard in a central Tehran Square on Sunday, seemingly aimed at warning the United States against intervention.
The dollar fell against most of its major peers in Asian trade, helping gold prices jump more than 2 percent. Spot gold last traded at $5,091 an ounce after hitting a new high of $5,111 earlier.
Oil prices were narrowly mixed after climbing more than 2 percent in the previous session.
China’s Shanghai Composite index finished marginally lower at 4,132.60 after a choppy session. Hong Kong’s Hang Seng ended little changed with a positive bias at 26,765.52.
Japanese markets tumbled as the yen surged against the U.S. dollar on the prospect of the U.S. joining Japan in foreign exchange on the intervention.
The Nikkei average fell 1.79 percent to 52,885.25 while the broader Topix index settled 2.13 percent lower at 3,552.49. Automakers Honda Motor, Toyota and Nissan all slumped over 4 percent.
Seoul stocks snapped a three-day rally after all three U.S. benchmark indexes suffered their second straight weekly declines amid rising tensions between the U.S. and Iran.
The Kospi average fell 0.81 percent to 4,949.59 ahead of some key events this week, including the release of fourth-quarter earnings from Samsung Electronics and SK Hynix.
New Zealand’s benchmark S&P/NZX-50 index ended marginally higher at 13,460.74 after staging a later recovery from day’s lows.
U.S. stocks ended mixed on Friday after ending sharply higher over the two previous sessions amid eased Greenland worries.
The mixed performance came as Iran-U.S. tensions escalated and chip maker Intel offered disappointing guidance for its first-quarter revenue.
Investors ignored data that showed a measure of U.S. consumer sentiment rose for a second straight month in January to reach its highest level in five months.
The Dow dipped 0.6 percent, while the S&P 500 inched up marginally and the tech-heavy Nasdaq Composite added 0.3 percent.
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