Asian stock markets mostly declined after renewed global trade tensions rattled investor confidence, while US futures fell sharply following a holiday closure on Wall Street.
Market sentiment weakened after US President Donald Trump threatened to impose an additional 10 percent tariff on imports from eight European countries, prompting strong reactions from major trading partners.
In Asia, Japan’s Nikkei 225 dropped 1.1 percent, pressured by political uncertainty after Prime Minister Sanae Takaichi called a snap election and signaled possible higher government spending. Rising concerns over Japan’s fiscal outlook pushed long-term government bond yields sharply higher, weighing on equities.
Chinese markets also saw modest losses, with Hong Kong’s Hang Seng and South Korea’s Kospi trading lower. Australia’s benchmark index declined, while Taiwan posted slight gains. Indian equities also ended in negative territory.
Investors are now focused on upcoming US corporate earnings and inflation data, as well as central bank meetings. The US Federal Reserve is widely expected to keep interest rates unchanged at its next meeting, while the Bank of Japan’s policy decision later this week is also being closely watched. European markets closed lower amid the same trade-related concerns.