In anticipation of China announcing a massive stimulus program to help offset US President Donald Trump’s impending tariffs on Chinese imports, Asian markets rose on Monday.
Investors were also keeping an eye out for any last-minute agreements to avoid the taxes that will be imposed on China, Canada, and Mexico on Tuesday.
In addition to imposing an additional 10% duty on Chinese imports starting this week, Trump had confirmed 25% tariffs on goods from Canada and Mexico.
SPI Asset Management analyst Stephen Innes stated, “Traders are on edge for last-minute negotiations to sidestep US tariffs.”
“In Asia, all eyes are on China’s National People’s Congress, where traders are betting on a fiscal boost to counter the drag from US tariffs and keep China’s blistering 2024 equity rally alive,” he added.
Ahead of the key Chinese parliamentary meeting opening on Wednesday, Hong Kong’s Hang Seng and Japan’s Nikkei climbed more than one percent, while Shanghai was also up.
Meanwhile, Bitcoin slipped 1.3 percent on Asian markets after a six percent-surge on Sunday on the back of Trump’s announcement that he was considering adding five digital assets to the US’ strategic reserves.
One of the most erratic assets, bitcoin, dropped below $80,000 last week for the first time since November, and other cryptocurrencies followed suit.
Recent claims that Trump and his wife Melania were trying to profit off his political achievements were sparked by the introduction of their own branded meme coins.
Additionally, Trump has assigned close political supporter Elon Musk, a millionaire CEO, to spearhead a government efficiency drive. Musk has regularly advertised cryptocurrencies on his own social media platform, X.
