Asian stocks showed mixed results on Tuesday, with Chinese markets surging while Japanese shares dragged regional equities lower. China’s Shanghai Shenzhen CSI 300 rose 2%, the Shanghai Composite climbed 1.8%, and Hong Kong’s Hang Seng gained 1.5% following reports of a proposed gradual U.S. tariff increase under Donald Trump’s incoming administration. The plan suggests monthly tariff hikes of 2%-5% to enhance negotiating leverage with minimal inflation risk, although it remains in early stages of consideration. In contrast, Japan’s Nikkei 225 fell 1.7%, and TOPIX declined 1.3% as markets adjusted to expectations of fewer U.S. Federal Reserve rate cuts in 2025. Australia’s S&P/ASX 200 edged up 0.3%, while South Korea’s KOSPI was largely unchanged amidst political uncertainty and anticipation of a Bank of Korea rate cut. Meanwhile, the Philippines’ PSEi Composite and Singapore’s Straits Times Index posted minor losses, falling 0.7% and 0.1%, respectively. Investors are focused on key Chinese economic data due Friday, including GDP and retail sales, as well as a shifting outlook on U.S. monetary policy, with markets now expecting just one Fed rate cut in 2025, down from prior predictions of four.
