Asia-Pacific Stocks Mixed: Nikkei 225 Slides While Kospi, ASX 200 Gain as Dollar Firms

Regional stocks diverge as tariff jitters meet firmer dollar

Asian equities started the week on a split tone Monday, with Asia-Pacific markets mixed after Wall Street’s modest rebound and renewed tariff headlines. Japan’s Nikkei 225 underperformed while South Korea’s Kospi and Australia’s ASX 200 advanced, as investors weighed a stronger U.S. dollar, upcoming U.S. data, and the Reserve Bank of Australia’s two-day policy meeting.

Japan: Nikkei 225 gives back some recent records

The Nikkei 225 eased roughly 0.7%, with the broader Topix also softer after touching records late last week. Exporters and rate-sensitive growth names lagged as the firmer dollar and higher real yields kept pressure on duration trades. Investors are also positioning ahead of this week’s Bank of Japan Tankan survey and China PMIs.

Korea: Kospi extends gains on tech strength

The Kospi added around 1% in early trade, supported by large-cap technology and semiconductor shares; small-cap Kosdaq benchmarks also firmed. Traders cited stabilizing global risk appetite and a still-constructive AI hardware cycle, even as tariff risks temper multiple expansion.

Australia: ASX 200 firmer ahead of the RBA decision

Australia’s ASX 200 rose about 0.4% as miners and financials edged higher. The RBA began its meeting with consensus looking for an on-hold outcome while parsing upside risks from stickier services inflation against cooling labor indicators. The stronger dollar and global growth mix kept commodity-linked names range-bound into the policy call.

China & Hong Kong: cautious optimism into data

Mainland Chinese shares opened constructive, and Hong Kong’s Hang Seng futures pointed higher than the prior close, suggesting tentative risk appetite ahead of fresh activity data. Sentiment remains sensitive to policy follow-through and global trade frictions that could sway export-heavy sectors.

FX & rates: stronger dollar keeps yen pinned

The stronger dollar held near recent highs as resilient U.S. data tempered the market’s appetite for aggressive Fed easing, leaving the yen heavy and the euro steady. Rate differentials and safe-haven demand amid tariff uncertainty continue to bias FX toward the greenback in the near term.

Macro overhang: tariffs complicate the outlook

New U.S. tariff measures announced in recent days have injected policy noise into global risk, the Asia-Pacific markets are feeling it most directly in pharmaceuticals, autos and selected consumer categories. While the immediate index impact has been uneven, corporate guidance over the coming weeks will shape how supply chains and pricing adapt, particularly for companies with high U.S. sales exposure.

Commodities: oil steady, gold edges lower

Crude prices were little changed to slightly firmer on distillate tightness and geopolitical risk premium, while gold eased on the combination of a stronger dollar and steady real yields. Industrial metals traded mixed as traders balanced China’s demand signals with supply constraints.

What’s next: catalysts to watch

• RBA policy decision: An on-hold stance would keep the cash rate at 3.6%, but guidance on inflation risks and household demand will steer the ASX 200 and AUD.
• U.S. PCE & jobs data: A firmer print could reinforce the dollar and pressure rate-sensitive equities across the region.
• Japan’s Tankan & China PMIs: Surprises on capex intentions or factory activity could swing the Nikkei 225 and broader Asia-Pacific markets tone mid-week.

Portfolio take: positioning into quarter-end

With Nikkei 225 momentum consolidating, investors appear to be rotating toward defensives in Japan and selectively adding beta in Korea where the Kospi still tracks semiconductor cycles. In Australia, the ASX 200’s mix of value and income continues to draw interest, especially if the RBA signals patience. Across Asia, a stronger dollar and tariff uncertainty argue for selective exposure and hedged FX until the policy path is clearer.