Investing.com-- Most Asian stocks declined on Tuesday as renewed U.S. tariffs under President Donald Trump fueled a broader risk-off sentiment, while a holiday in Japan kept trading volumes subdued.
U.S. stock index futures were also lower in Asia hours on Tuesday.
Global investors cautiously await the U.S. consumer price inflation data due on Wednesday to assess the Federal Reserve’s rate outlook.
Asia stocks fall amid US tariffs, traders flock to safe-haven assets
Asian stocks faced pressure as Trump’s fresh tariffs on aluminum and steel, combined with existing tariffs on Chinese imports, fueled a broader risk-off sentiment in global markets.
Investors grew increasingly wary of escalating trade tensions, which threatened to slow economic growth and disrupt supply chains across key industries.
The uncertainty led to widespread sell-offs across major Asian indices, with investors shifting toward safe-haven assets such as bonds and gold.
China’s Shanghai Composite index fell 0.5% on Tuesday, while the Shanghai Shenzhen CSI 300 index declined 0.7%.
Hong Kong’s Hang Seng index dropped 0.7%.
Chinese and Hong Kong stocks fell after climbing for several consecutive sessions. Gains were driven by a rally in technology shares on optimism around DeepSeek AI.
Philippines' PSEi Composite index dropped more than 1%, while Singapore's Straits Times Index fell 0.5%
Nifty 50 Futures edged 0.1% lower, while Indonesia's Jakarta Stock Exchange Composite Index fell 0.6%.
Bucking the regional trend, South Korea’s KOSPI rose 0.5%.
Australian consumer sentiment weak despite rate cut bets
Australia's S&P/ASX 200 index was largely unchanged.
A Westpac survey on Tuesday showed that Australian consumer sentiment remained weak in February due to continued pressures on family finances despite interest rate cut expectations.
The Reserve Bank of Australia is set to meet on February 17–18 and is expected to cut rates, as recent inflation data indicated that inflation is nearing the RBA’s target faster than previously anticipated.
"Consistent with its inflation mandate, we expect the Board to begin reducing the restrictiveness of monetary policy with a 25bp cut at its upcoming meeting," Westpac economists said.
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