Asian markets showed mixed performance on Tuesday as investors grappled with ongoing trade war uncertainties and looked ahead to key U.S. earnings reports. Market sentiment is also influenced by the latest economic data releases, particularly those concerning jobs and inflation.
The trade war between the U.S. and China continues to be a major factor. The U.S. has imposed tariffs, including a 145% levy on many Chinese products, while China has responded with 125% tariffs of its own. Treasury Secretary Scott Bessent recently stated that de-escalation depends on China addressing trade imbalances.
Several major U.S. tech companies, including Amazon, Apple, Meta, and Microsoft, are scheduled to release their first-quarter earnings this week, which investors will be watching closely. Analyst Tony Sycamore of IG suggests that reduced tariffs could help the U.S. economy navigate through the year, while elevated tariffs could trigger stock market declines and increase recession risks. West Texas Intermediate crude oil is currently trading down 0.2% at $61.91 per barrel.