Asian Markets Rise on Hopes of China’s Fiscal Stimulus Amid Trump Tariffs

HONG KONG, 3rd March 2025 (BSS/AFP) – Asian markets surged on Monday, buoyed by optimism that China would unveil a substantial stimulus package to mitigate the impact of looming tariffs imposed by US President Donald Trump on Chinese goods.

Investors were also keeping a close eye on any last-minute negotiations to avert the tariffs that are set to take effect on Tuesday, affecting Mexico, Canada, and China.

Trump had confirmed 25 percent tariffs on products from Mexico and Canada, while also implementing a 10 percent tariff on Chinese goods starting this week.

“Traders are anxious, awaiting any last-minute talks to avoid the imposition of US tariffs,” said Stephen Innes, an analyst at SPI Asset Management.

“In Asia, all attention is on China’s National People’s Congress, where traders are speculating that a fiscal stimulus will be announced to counter the economic drag caused by US tariffs and sustain China’s strong equity rally from 2024,” he added.

Ahead of the crucial Chinese parliamentary meeting set to open on Wednesday, Hong Kong’s Hang Seng and Japan’s Nikkei both climbed over one percent, while Shanghai also saw a rise.

Meanwhile, Bitcoin fell by 1.3 percent in Asian markets following a six percent surge on Sunday, which had been triggered by Trump’s announcement that he was considering adding five digital assets to the US strategic reserves.

Last week, Bitcoin, known for its volatility, dropped below $80,000 for the first time since November, with other cryptocurrencies following a similar downward trend.

Both Trump and his wife Melania recently introduced their own branded meme coins, prompting accusations that they were attempting to profit from his political success.

Billionaire CEO Elon Musk, a close political ally of Trump, who has been tasked with leading a government efficiency drive, has frequently promoted cryptocurrencies on his social media platform, X.

Key figures around 0230 GMT:

• Tokyo – Nikkei 225: UP 1.0 percent at 37,516.30
• Hong Kong – Hang Seng Index: UP 1.2 percent at 23,223.83
• Shanghai – Composite: UP 0.5 percent at 3,335.01
• Euro/dollar: UP at $1.0419 from $1.0384 on Friday
• Pound/dollar: UP at $1.2612 from $1.2584
• Dollar/yen: UP at 150.28 from 149.52 yen
• Euro/pound: UP at 82.62 pence from 82.51 pence
• West Texas Intermediate: UP 1.12 percent at $70.54 per barrel
• Brent North Sea Crude: UP 1.09 percent at $73.60 per barrel
• New York – Dow: UP 1.4 percent at 43,840.91 (close)
• London – FTSE 100: UP 0.6 percent at 8,809.74 (close)

As global markets remain on edge ahead of US tariffs, analysts will continue to monitor developments closely. Any further news regarding China’s stimulus measures or additional negotiations could have a significant impact on market sentiment.