Asian Shares Fall as Trump’s China Investment Curbs Fuel Market Fears
- Asian Stock Slump: Asian markets saw a decline of 1.3% as concerns over U.S. investment restrictions on China, particularly in sectors like AI and aerospace, weighed on investor sentiment.
- Nikkei’s Fall: Japan’s Nikkei fell 0.9% after returning from a holiday, while major trading houses saw a rise in shares due to interest from prominent investor Warren Buffett.
- Hong Kong’s Struggles: The Hang Seng index dropped 2.3%, continuing its decline after President Trump’s decision to limit Chinese investments.
- Gold Hits Record High: Gold prices surged to a record high amid rising fears of tariffs and broader economic uncertainty.
- Nvidia’s Earnings Report: Investors are closely watching Nvidia’s upcoming earnings report on Wednesday, as options suggest an 8% potential price move.
- Weak U.S. Economic Data: Disappointing U.S. data, including retail sales and manufacturing surveys, has shaken confidence in the strength of the U.S. economy, leading to expectations of interest rate cuts by the Federal Reserve.
- Euro Weakens: The euro’s recent rise faded as German elections provided no major surprises, and the currency returned to its initial value for the week.
- Oil Prices Remain Stable: Oil prices edged up slightly, with Brent crude rising by 0.2% to $74.93 per barrel.
- Investor Caution Prevails: Despite ongoing concerns about tariffs, investors remain cautious, awaiting further developments on U.S.-China relations and global economic conditions.
- What’s Next? The market’s reaction to geopolitical and economic events remains volatile, highlighting the uncertainty investors face in these turbulent times. While gold’s rally reflects a safe-haven appeal, it’s clear that the ongoing trade tensions between the U.S. and China will continue to influence market sentiment. Monitoring earnings reports like Nvidia’s will be crucial to gauge the impact on the tech sector and broader market trends.
Asian Stocks Slide as Trump’s Tariffs and Investment Curbs Shake Markets
- Asian stocks posted their biggest drop in three weeks as US President Donald Trump pressed ahead with tariffs on Canada and Mexico while ordering restrictions on Chinese investment in key US sectors.
- Markets in Japan, Taiwan, and Hong Kong saw sharp declines, with risk appetite fading across the region.
- Treasury yields fell, while gold held near record highs amid rising demand for safe-haven assets.
- Bitcoin and other cryptocurrencies also slipped. Meanwhile, Trump’s stance on Ukraine shifted, withdrawing US condemnation of Russia’s 2022 invasion.
- Investors are also watching potential tightening of US semiconductor curbs, which could impact AI supply chains.
- Meanwhile, Japan’s trading houses rallied after Berkshire Hathaway signaled plans to increase its stakes.
- Oil edged higher on new US sanctions on Iran, while the Bank of Korea cut interest rates as expected.

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