Asian markets are mixed as US tech companies are due to release earnings

Asian shares were mixed on Monday following the Easter weekend holiday, with some markets remaining closed.

US futures declined as American tech companies prepared to release their earnings amidst recent market turmoil caused by President Donald Trump’s trade war. Stephen Innes of SPI Asset Management commented, “One thing that’s absolutely clear — and no longer debatable — is that the reputational hit to the US brand is real, and it’s not fading quietly into the next news cycle.”

Unconfirmed reports suggested that China has halted imports of certain US agricultural products and liquefied natural gas to avoid paying steep tariffs imposed in retaliation for Trump’s tariffs of up to 145% on Chinese imports. Economists remain concerned that Trump’s aggressive tariff policies could lead to a recession if fully implemented and sustained.

Tokyo’s Nikkei 225 index fell by 1% to 34,368.42, reflecting the lack of significant progress towards a trade deal with Trump. Japanese automakers, in particular, are facing 25% tariffs on exports of vehicles and auto parts to the US. Meanwhile, the Shanghai Composite index rose by 0.3% to 3,244.44, and South Korea’s Kospi remained nearly unchanged at 2,484.23. Taiwan’s Taiex dropped by 1.2%. Markets in Hong Kong and Australia were closed.

US markets were shut on Friday and showed mixed results at Thursday’s close. The Dow Jones Industrial Average fell by 1.3%, while the S&P 500 edged up by 0.1%, and the Nasdaq Composite slipped by 0.1%. Treasury yields rose early Monday.

Big Tech’s “Magnificent Seven” companies—Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet, and Facebook parent Meta Platforms—are set to begin earnings season this week. Since Trump’s inauguration, their combined market value has dropped by $3.8 trillion, or 22%, as of 20 April. Trump’s tariffs have disrupted supply chains in China and other key global markets.

Tesla, which manufactures its electric vehicles in Shanghai, is scheduled to release its full financial report on Tuesday, having already reported a 13% decline in first-quarter car sales compared to the same period last year.

Early Monday, US benchmark crude oil prices fell by $1.20 to $62.81 per barrel, while Brent crude, the international standard, dropped by $1.20 to $66.76 per barrel. The US dollar weakened to 141.08 Japanese yen, its lowest level since September, down from 141.80 yen. The euro strengthened to $1.1473 from $1.1404.

Economists are concerned that the recent decline in the dollar may signal a loss of confidence in the US as a safe haven for investments, as Trump continues to reshape global trade. In the bond market, the yield on the 10-year Treasury rose to 4.35% from 4.32% late Thursday.

By RSS/AP