Asian stock markets traded mixed on Monday as Japan’s Nikkei slumped, tracking Wall Street’s decline over a weaker U.S. jobs report, while other regional indexes saw limited movement as investors evaluated the effects of newly announced U.S. tariffs.
Wall Street ended lower on Friday, notching sharp weekly losses as recent trade tariffs announced by President Donald Trump rattled investors, while a weaker-than-expected nonfarm payrolls data stoked economic growth concerns.
U.S. stock index futures edged higher in Asian trading on Monday.
Nikkei tumbles as yen strengthens after US jobs report The U.S. Labor Department reported on Friday that July nonfarm payrolls rose by only 73,000, far below expectations, while May and June job figures were revised down sharply.
The unemployment rate rose to 4.2% from 4.1%.
This weaker-than-expected data fueled widespread bets on a September Federal Reserve rate cut.
The dollar slid sharply as yields tumbled, boosting the yen.
The yen’s USD/JPY pair dropped more than 2% on Friday. It was trading marginally higher on Monday.
A stronger yen weighed heavily on Japanese exporters and capped gains in the Nikkei 225, which lost more than 2% on Monday, wiping out most of last week’s modest recovery.
Investors weigh Trump tariffs; RBI decision ahead President Trump’s executive order last week imposed new tariffs ranging from 10% to 41% on imports from dozens of countries, including Canada, Brazil, India and Taiwan.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The changes raised the average U.S. tariff rate to roughly 18%, the highest since the 1930s, and generated volatility in global equity markets. Several Asian markets, particularly exporters, came under pressure following the announcement.
Chinese markets were muted on Friday after sharp losses in the previous session. The Shanghai Composite index was little changed, while the Shanghai Shenzhen CSI 300 tarded largely flat.
Hong Kong’s Hang Seng index edged 0.2% higher on Monday.
Australia’s S&P/ASX 200 fell 0.3%, while Singapore’s Straits Times Index rose 0.7%.
South Korea’s KOSPI rose 0.7% after a nearly 4% plunge on Friday. Last week, new finance ministry proposals revealed plans to increase both corporate income and investment taxes.
Elsewhere, futures tied to India’s Nifty 50 edged up 0.1% on Monday. The Reserve Bank of India will meet this week, with an interest rate decision due on Wednesday.
