Asian Shares Mixed; Hang Seng Falls Over 2%

(RTTNews) - Asian stocks ended mixed on Tuesday as investors awaited greater clarity on the next round of tariffs from U.S. President Donald Trump.

Trump said there will be "flexibility" on his reciprocal tariff plan but announced that the United States will soon implement new tariffs on a range of products, including cars, aluminum, and steel - adding to investor anxiety in the face of global conflicts and economic instability.

The dollar index was at a three-week high and gold edged up slightly while oil held an overnight gain as Trump threatened to impose 25 per cent "secondary tariffs" on countries importing Venezuelan oil, including India and China, starting 2 April.

China's Shanghai Composite index finished marginally lower at 3,369.98 after a choppy session on concerns over the effectiveness of China's stimulus measures in offsetting new U.S. tariffs.

The People's Bank of China said on Monday that it would allow qualified banks to pay different interest rates for the loans, known as the medium-term lending facility (MLF), signaling a greater willingness to ease monetary policy.

Hong Kong's Hang Seng index tumbled 2.35 percent to 23,344.25 as technology stocks came under selling pressure following Xiaomi Corp's $5.5 billion share sale.

Japanese markets eked out modest gains amid optimism that the U.S. reciprocal tariffs will be narrower than feared.

The Nikkei average rose 0.46 percent to 37,780.54, snapping a three-day losing streak. The broader Topix index settled 0.24 percent higher at 2,797.52.

The yen weakened against other major currencies even as minutes from BoJ's January 23-24 meeting revealed a growing consensus among policymakers that further tightening would be appropriate.

Seoul stocks fell, with the Kospi average ending down 0.62 percent at 2,615.81. Heavyweight Samsung Electronics dropped 1.2 percent as co-CEO Han Jong-Hee passed away at 63 due to cardiac arrest.

Hyundai Motor Co. shares rallied 3.3 percent. The Group announced plans to invest $21 billion in the U.S. through 2028, raising expectations the company may be able to avoid higher U.S. tariffs.

Australian markets gave up earlier gains to end on a flat note ahead of Treasurer Jim Chalmers' pre-election federal budget. Miners declined, offsetting gains in the information technology sector.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.46 percent at 12,184.51.

U.S. stocks rose sharply overnight after reports emerged that the Trump administration might take a more measured approach on tariffs against U.S. trading partners and could omit a set of industry-specific tariffs.

President Trump said that tariffs on automobiles, aluminum and pharmaceuticals are coming soon, and that he may give "a lot of countries" breaks on tariffs, without providing any details.

In economic news, data showed U.S. business activity picked up in March, but consumer sentiment deteriorated amidst fears over import tariffs and deep government spending cuts.

The Dow rallied 1.4 percent, the S&P 500 surged 1.8 percent and the tech-heavy Nasdaq Composite soared 2.3 percent.