Most Asian stocks fell on Monday after U.S. President Donald Trump revived global fears of trade tariffs by imposing duties on several major European nations over Greenland.
Losses in Chinese stocks were limited after gross domestic product data read stronger than expected for the fourth quarter. The Chinese economy also met Beijing’s annual growth target of 5% in 2025.
South Korean shares rallied past their peers on gains, hitting a record high on gains in Hyundai, as investors cheered the company’s artificial intelligence and robotics efforts.
Other regional markets largely tracked a tumble in Wall Street futures after Trump’s tariff threat, with S&P 500 Futures falling as much as 1% in Asian trade. U.S. markets will be closed on Monday for a holiday.
Asia stocks dip on Trump’s Greenland tariffs
Japan’s Nikkei 225 and TOPIX indexes fell 0.7% and 0.2%, respectively, while Hong Kong’s Hang Seng index slid 1%.
Australia’s ASX 200 fell 0.3%, while Singapore’s Straits Times index lost 0.5%. India’s Nifty 50 index fell 0.6% in morning trade.
Trump over the weekend threatened to impose up to 25% trade tariffs against several European countries, stating that the duties would remain until a deal was reached to sell Greenland to the United States.
European nations largely rejected Trump’s demands for the Danish territory, with France also seen preparing retaliatory economic measures against Washington.
Trump’s tariff threats added to already heightened geopolitical tensions across the globe, keeping investors largely averse towards risk-driven assets. Gold prices soared to a record high on Monday amid heightened safe haven demand.
Trump has repeatedly demanded Greenland, claiming that the territory is important for U.S. national security. He has also raised the possibility of military action over Greenland– a threat that appeared more credible after a U.S. incursion in Venezuela at the beginning of the year.
Chinese shares flat as 2025 GDP meets target
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved in a tight range on Monday after government data showed GDP grew slightly more than expected quarter-on-quarter in the December period.
GDP grew 4.5% year-on-year in the December quarter, in line with expectations, taking China’s 2025 GDP to 5%, meeting Beijing’s target.
The print was driven chiefly by resilience in Chinese exports, as demand outside the U.S. remained strong. This in turn kept China’s manufacturing sector running hot.
Chinese consumption was also supported by continued stimulus measures from Beijing, as the government sought to end a years-long post-COVID slump in confidence.
But some prints for December still showed gaps in China’s economic recovery. Fixed asset investment, a key gauge of business spending, shrank much more than expected, while retail sales growth missed expectations.
South Korean stocks hit record high on Hyundai, chip gains
South Korea’s KOSPI outperformed its regional peers on Monday, rising 1.5% to a record high on gains in Hyundai.
Hyundai Motor (KS:005380) was the biggest boost to the KOSPI, surging over 12% to a record high amid growing optimism over the company’s prospects in robotics and AI.
The stock has been on a tear this year, especially after Hyundai executives were seen meeting Nvidia CEO Jensen Huang-- a meeting that sparked speculation over a potential tieup.
Hyundai also unveiled its own robotics and physical AI plans at the CES trade show, and on Friday said it was hiring Tesla Inc’s (NASDAQ:TSLA) former head of robotics as an adviser.
Gains in chips also buoyed the KOSPI.
SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930), the country’s two largest chipmakers, rose 0.4% and 1.5%, respectively.
Sentiment towards the two, which are primarily memory chip makers, was buoyed by rival Micron Technology Inc (NASDAQ:MU) investing $1.8 billion to buy a facility from Taiwan’s Powerchip Semiconductor Manufacturing Corp (TW:6770).
Powerchip shares soared 10% in Taipei trade after the deal.
Broader Asian chipmakers retreated on Monday, but were sitting on some gains from last week following bumper earnings from industry bellwether TSMC.
Source: investing