Asian Markets Trade Mixed Amid Global Trade Uncertainty; Australian and Japanese Stocks See Diverging Trends

Asian stock markets opened the week on a mixed note Monday, reflecting cautious investor sentiment amid global economic concerns. This comes despite broadly positive cues from Wall Street on Friday, as worries persist over the potential impact of U.S. trade policies. Both Chinese and Australian officials have warned that the United States' upcoming reciprocal tariffs—set to take effect on April 2—could trigger widespread shocks across the global economy. Although U.S. President Donald Trump hinted at some flexibility regarding tariff implementation, his remark that exempting one country would necessitate similar treatment for all added more uncertainty to the outlook.

In Australia, equities edged lower after two days of gains, despite Friday’s upbeat performance on Wall Street. The benchmark S&P/ASX 200 Index dipped 0.08 percent to 7,925.20, while the broader All Ordinaries Index slipped 0.13 percent to 8,148.40. A mixed sectoral performance contributed to the subdued sentiment.

Mining stocks were a bright spot, with Fortescue Metals and Mineral Resources gaining over 2 and 3 percent respectively, while Rio Tinto posted modest gains. However, BHP Group declined nearly 1 percent. Energy stocks also saw moderate gains, led by Beach Energy and Woodside Energy, although Origin Energy edged slightly lower.

Tech stocks were mixed, with Block rising over 1 percent and Appen adding nearly 2 percent, while WiseTech Global tumbled more than 3 percent. Gold miners largely traded higher, with Evolution Mining and Gold Road Resources gaining over 1 percent each.

Among the major banks, Commonwealth Bank and Westpac advanced nearly 1 percent, while ANZ and NAB posted smaller gains.

In corporate news, Helia shares plunged nearly 26 percent following news that its mortgage insurance agreement with Commonwealth Bank may not be renewed beyond December 31. James Hardie Industries also slumped more than 12 percent after announcing a merger deal with NYSE-listed AZEK worth $8.8 billion. Synlait Milk dropped over 9 percent despite reporting a 105 percent increase in profits.

On the economic front, Australia’s manufacturing sector continued to grow in March, with the PMI climbing to 52.6 from 50.4, indicating stronger expansion. The services PMI also improved to 51.2, lifting the composite PMI to 51.3.

Meanwhile, the Japanese market remained flat in choppy trading after three consecutive days of losses. The Nikkei 225 ended the morning session at 37,676.97, virtually unchanged. Gains in key stocks like SoftBank Group and Fast Retailing were offset by weakness in exporters and financials. Major automakers such as Toyota and Honda posted modest gains, while tech players like Screen Holdings and Tokyo Electron declined.

Japanese banks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial—all slipped over 1 percent, and leading exporters like Panasonic, Canon, and Sony traded lower. In contrast, DeNA and CyberAgent rose sharply, gaining over 5 and 3 percent, respectively.

Japan’s economic data reflected continued weakness, with the manufacturing PMI dropping to 48.3 in March from 49.0, indicating contraction. The services PMI also slipped into contraction territory at 49.5, down from 53.7 in February.

Elsewhere in Asia, markets showed mixed movements. Indonesia declined 2.1 percent, while China and Hong Kong edged down 0.1 and 0.3 percent, respectively. Meanwhile, New Zealand, Singapore, Malaysia, and Taiwan saw slight gains, and South Korea remained flat.

On Wall Street, U.S. stocks rebounded strongly on Friday. The Nasdaq rose 0.5 percent, while the Dow and S&P 500 saw modest increases. However, European markets fell, with Germany’s DAX down 0.5 percent, and France’s CAC 40 and the UK’s FTSE 100 slipping 0.6 percent each.

Oil prices also saw a modest uptick, with WTI crude for May delivery rising 0.3 percent to $68.30 a barrel, amid renewed geopolitical tensions and fresh U.S. sanctions on a Chinese refinery importing Iranian oil.