Asian Markets Maintain a Narrow Range Amid Tariff Optimism and Mixed Economic Signals

Most Asian stocks extended recent gains on Tuesday as investors digested reports that President Donald Trump's April 2 tariffs will be less severe than initially feared. This has provided some relief for risk-averse markets, even as lingering uncertainty over the scope of the targeted tariffs—expected to affect around 15 countries—continues to weigh on sentiment.

Regional Market Overview

• China:
  Chinese markets saw a reversal of early losses driven by renewed optimism over domestic artificial intelligence advancements. Bloomberg reported that Jack Ma-backed Ant Group is leveraging locally made chips for new, cost-effective AI training techniques. Despite this boost, profit-taking in heavyweight technology stocks led to a 2% slide on the Hang Seng index, dampening the overall rally.

• Japan:
  Japanese equities showed mixed performance. The Nikkei 225 advanced by 0.7%, buoyed by export-oriented stocks benefiting from a weaker yen. Meanwhile, the TOPIX index hit a nine-month high briefly, even though softer-than-expected PMI data has recently weighed on market sentiment. Concerns over domestic spending and trade-related headwinds have prompted questions about future interest rate moves by the Bank of Japan.

• Other Markets:
  Australia's ASX 200 added 0.4%, while Singapore's Straits Times surged 0.9% to a record high. South Korea's KOSPI lagged slightly with a 0.3% decline, and India's Nifty 50 futures pointed to a flat open after rebounding from nine-month lows.

Investor Sentiment and Tariff Expectations

Reports over the weekend indicated that Trump is expected to impose a more selective set of tariffs, limiting reciprocal measures to approximately 15 countries. This news has provided a short-term boost to investor sentiment, although the fact that many of the targeted nations are in Asia continues to inject caution into the market. Wall Street futures have been rising, but the overall market remains close to correction territory as investors weigh these potential trade policy impacts.

FMP API Insights

✅ Technical (Williams %R) API
Use this API to assess overbought or oversold conditions in Asian indices, providing insight into potential turning points in market sentiment.

✅ Sector P/E Ratio API
Leverage this API to analyze valuation trends across key sectors, helping gauge whether current market levels are justified by underlying fundamentals.

Conclusion

Asian markets are currently navigating a period of cautious optimism, buoyed by reports of less severe tariffs and some positive signals from sectors like technology. However, mixed economic data and the potential impact of targeted tariffs continue to challenge investor sentiment. Monitoring technical indicators and sector valuations via the Technical (Williams %R) and Sector P/E Ratio APIs will be essential for understanding how these factors may influence future market movements.