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Asian stock markets traded mixed on Monday, with Japanese shares outperforming following a surge in Toyota shares, while Chinese markets remained subdued amid persistent uncertainty over U.S.-China trade talks.
Wall Street closed last week with gains across major indexes, but U.S. stock futures pointed lower during Asian hours as trade tensions continued to weigh on sentiment.
Japan: Toyota Boosts Nikkei
- Nikkei 225 rose 0.5%, and the TOPIX gained 1.1%.
- Toyota Motor (TYO:7203) jumped 5.5% after announcing it was exploring a potential $42 billion buyout of its key supplier Toyota Industries (OTC:TYIDF), according to Bloomberg.
- Broader auto sector stocks also benefited:
- Nissan Motor (TYO:7201) rose 2.5%.
- Honda Motor (TYO:7267) advanced 1.2%.
Investors are also awaiting the Bank of Japan’s policy decision on May 1, where rates are widely expected to remain unchanged amid global economic uncertainty.
China and Hong Kong: Trade Tensions Weigh
- Shanghai Composite and Shanghai Shenzhen CSI 300 were largely flat.
- Hong Kong’s Hang Seng Index dipped 0.1%.
Uncertainty persisted after:
- U.S. Treasury Secretary Scott Bessent stated on Sunday that he was unaware of any active tariff negotiations with China.
- Beijing also denied any ongoing trade talks, contradicting President Trump’s earlier claims.
Investors are now looking toward China’s official and Caixin manufacturing PMI data, set for release on Wednesday, for fresh insight into the impact of tariffs on the world’s second-largest economy.
Other Asian Markets
- South Korea’s KOSPI edged 0.2% higher.
- Thailand’s SET Index gained 0.3%.
- India’s Nifty 50 futures ticked up 0.1%.
- Australia’s S&P/ASX 200 rose 0.8%, supported by strong performances in mining and financial stocks.
- Singapore’s Straits Times Index fell 0.5%, underperforming regional peers.
Summary:
- Japan led gains on the back of Toyota’s surge.
- Chinese and Hong Kong markets remained cautious amid conflicting U.S.-China trade signals.
- Broader Asian sentiment stayed mixed ahead of key economic data releases later in the week.
Markets are likely to remain volatile as trade developments and central bank meetings drive investor behavior in the coming days.
