Stocks mostly rose on Monday as investors evaluated the ongoing trade war between the United States and other countries, particularly the high tariffs imposed by President Donald Trump. Optimism in the market was supported by China’s plans to boost consumption and stimulate its economy, the second-largest in the world.
The market opened cautiously after a positive week of trading. Attention is now focused on the upcoming earnings season, crucial economic data releases, and central bank decisions. This mix of factors has led to a cautiously optimistic stance among investors.
Market Sentiment Shaped by Tariffs and Global Developments
The direction of market movement will depend on the economic data and US corporate earnings. The expectations are not high, but there’s still plenty of concern.
Despite lingering caution, there is a growing sense of optimism among investors. This shift in sentiment comes as the White House appeared to be more sensitive to market reactions. Following a significant drop in the bond market caused by Trump’s “Liberation Day” tariffs on April 2, investors now feel more assured that the US administration will respond to market movements in a controlled way.
Asian Markets Lead the Way with Gains
The trading day started on a positive note in Asia after a strong end to last week’s trading in the US. Major markets such as Tokyo, Hong Kong, Sydney, Seoul, Taipei, Mumbai, Bangkok, Jakarta, and Wellington experienced gains. European markets followed suit, with London, Paris, and Frankfurt also seeing upward movements. However, Shanghai, Singapore, and Manila experienced slight declines, and Hong Kong’s market remained stable.
Commodities and the Impact of Global Optimism
As optimism grew in equity markets, gold prices, which had recently hit a record high of $3,500, dropped. Investors had flocked to safer assets in previous weeks, but as equities gained, the demand for gold decreased. The positive market sentiment continues to shift traders’ focus toward stock market performance.
Hopes for Negotiations to Ease Tariff Impact
Traders remain hopeful that ongoing negotiations between the US and other governments will soften the impact of Trump’s tariffs. Last week, reports suggested that China might consider exempting certain US goods from retaliatory tariffs. However, Beijing officially denied that there were active talks between the two nations, and an official also refuted Trump’s claim of a recent phone call with President Xi Jinping.
Meanwhile, Japanese media reported that a second round of trade talks between the US and Japan would take place in Washington on Thursday. These talks are expected to be closely monitored by other countries seeking relief from tariffs. US Treasury Secretary Scott Bessent also mentioned that a trade “understanding” between South Korea and the US could be reached by the end of the week.
China’s Economic Growth Plans Take Center Stage
In China, government officials were scheduled to hold a news conference on Monday to discuss key topics such as employment, economic growth, and development. This meeting comes after a recent gathering of China’s top decision-makers. The country’s leaders are focused on strengthening consumption to drive economic growth, with a clear emphasis on promoting multilateralism and opposing unilateral actions. These strategies are expected to play a key role in China’s efforts to navigate the complexities of global trade relations.
