Asian equity markets opened lower on Monday as renewed trade tensions between the United States and China weighed on sentiment. Investors reacted to news of fresh US tariffs and Beijing’s measured response, while Japanese markets remained closed for a public holiday. The cautious tone set the stage for a volatile start to the week across the region.
Broad declines across major exchanges
The Hang Seng in Hong Kong dropped more than 2 % in early trading, leading regional losses as technology and property shares came under pressure. Mainland China’s CSI 300 index fell about 1.3 %, extending a recent losing streak amid concerns over weakening exports and the potential fallout from new trade barriers.
South Korea’s Kospi slipped around 1 %, tracking declines in chipmakers and industrials, while Australia’s ASX 200 eased nearly 0.7 %, dragged down by mining and banking stocks. In India, both the Nifty 50 and Sensex indices opened modestly lower, reflecting global caution rather than domestic weakness.
Trade tensions dominate sentiment
Investor confidence was shaken after Washington announced plans to impose 100 % tariffs on a wide range of Chinese exports starting in November. Although Beijing refrained from immediate retaliation, it defended its export controls on strategic materials and left the door open for further measures.
The escalating rhetoric between the world’s two largest economies reignited fears of a prolonged trade confrontation that could dampen global growth. Analysts noted that the sharp sell-off followed weeks of optimism over potential policy easing in China, suggesting markets had become vulnerable to negative surprises.
Cautious outlook for the week ahead
Market watchers expect volatility to persist as investors await any conciliatory signals from either side. The upcoming US inflation data and China’s quarterly GDP figures will also be closely scrutinised for direction. Currency markets mirrored the anxiety, with the yuan hovering near recent lows and the Australian dollar under pressure.
Despite the sell-off, some analysts see potential buying opportunities if trade rhetoric softens or if Beijing unveils further stimulus measures. For now, however, risk appetite remains subdued as markets digest the growing geopolitical uncertainty.
Newshub Editorial in Asia – 13 October 2025
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