Introduction

Asian markets had a mixed start to the week, with most indices retreating after U.S. President Donald Trump's 25% tariffs on steel and aluminum imports. Mining and steel stocks declined, while Chinese AI stocks extended gains amid stimulus hopes and optimism in the tech sector.

With China's retaliatory tariffs set to take effect soon, investors remain cautious about the broader economic impact.

Market Reactions Across Asia

1. Steel & Mining Stocks Decline After Tariff Shock

• South Korea:
  • KOSPI fell 0.1% as major steel producers declined.
  • POSCO Holdings (NYSE:PKX) dropped nearly 2%, while Hyundai Steel (KS:004020) fell 2.5%.
• Japan:
  • Nikkei 225 edged 0.2% lower, with TOPIX down 0.3%.
  • Nippon Steel Corp (TYO:5401) fell 1.5%, while Uacj Corp (TYO:5741) lost over 1%.
• Australia:
  • S&P/ASX 200 fell 0.4%, while the S&P/ASX 300 Metals & Mining index lost nearly 1%.
• Indonesia & India:
  • Jakarta Composite Index slumped 2%.
  • India's Nifty 50 opened 0.4% lower, reflecting broader concerns.

2. China's AI Stocks Defy the Trend

• Despite trade war tensions, China's AI sector continued its bullish rally.
• AI firms like DeepSeek gained momentum, with investors optimistic about tech-led growth.
• Weak January CPI data increased hopes of further government stimulus, supporting Chinese equities.

Key Takeaways & Market Outlook

1. Escalating Trade War: With China set to impose retaliatory tariffs, markets are on edge.
2. Sector-Specific Impact: Steel and mining stocks face pressure, while tech remains resilient.
3. Stimulus Expectations: Investors are betting on China's economic support measures to counter trade risks.

For deeper insights into sector trends and valuation metrics, explore Sector P/E Ratio API and Sector Historical API.