Japan's exports, imports, and trade balance expanded in March. Investors hoped that the U.S. tariffs would be lowered after trade negotiations this week.
China and Hong Kong stocks lacked direction as trade tensions between China and the U.S. showed no signs of easing. Moreover, Chinese companies are accelerating their plans to shift away from exporting to the U.S. and focus on domestic and other markets.
Japan's core machinery orders rose at a slower pace in February, and the forward-looking outlook among manufacturers confirmed ongoing tariff uncertainties.
China's GDP expanded at 5.4% annual growth and maintained the pace of the previous quarter; industrial production surged to 7.7% in March, but new home prices across the 70 largest cities declined for the 21st consecutive month.
Japan's investors shifted their attention to the US-Japan trade negotiations later in the week, and businesses prepared to find ways to soften the impact of tariffs on business operations.
China's exports accelerated amid a surge in demand in the U.S. ahead of the looming tariffs and constantly shifting trade landscape. Trade surplus in March soared to above $100 billion as factories rushed to meet U.S. orders.
Japan's market indexes tumbled on Friday and trimmed weekly gains amid the uncertainty linked to the U.S. trade policy and weakening outlook for international trade.
China stocks traded volatilely and remained under pressure amid rapidly deteriorating relations between China and the U.S. Chinese companies announced stock buybacks, and China-controlled entities stepped up stock repurchases.
The U.S. slapped additional tariffs totaling 125% on Chinese goods and paused taxes on all imports for 90 days. China's March inflation data confirmed the ongoing deflation trends amid weak consumer sentiment and the job market.
Japan's benchmark indexes erased gains of the previous session after U.S. tariffs on Asian goods went into effect. Japanese executives are increasingly factoring in high trade barriers with the U.S. and are looking to other markets for future growth.
The U.S. tariffs of 104% went into effect this afternoon Hong Kong time, and Beijing political leaders prepare to impose stiff tariffs on U.S. services providers and leading tech companies.
