Asia markets mixed, China higher as PBoC stays pat; U.S. futures lower post-holiday

Asia-Pacific stocks mixed in thin-holiday trade on Monday as investors were in muted reaction following the release of People’s Bank of China’s monetary policy decision. Meanwhile, the persistent uncertainty surrounding U.S. tariff policies, marked by both threats of increased tariffs and promises of trade agreements, will continue to fuel volatility across all asset classes. With no major domestic economic data or earnings releases scheduled for Monday, attention remained focused on trade developments. Gold surged more than 1% to above $3,370 per ounce on Monday, setting a new record high, buoyed by a weaker U.S. dollar and safe-haven buying. Bitcoin ( BTC-USD ) jumped more than 2% to above $87,000 on Monday, breaking out of a week-long consolidation to reach its highest levels since late March. Japan ( NKY:IND ) fell 1.19% to around 34,500, while the broader Topix Index declined 0.5% to 2,545 on Monday, ending a two-day winning streak as investors turned cautious ahead of updates on US-Japan trade talks. The Japanese yen strengthened past 141 per dollar on Monday, marking a seven-month high as the dollar weakened amid rising concerns over the Federal Reserve’s independence. On the trade front, Japan is reportedly considering boosting imports of soybeans and rice as a concession in ongoing tariff negotiations with the US. Looking ahead, market attention is turning to next week’s Bank of Japan policy meeting, where the central bank is expected to keep the policy rate steady at 0.5%. China ( SHCOMP ) rose 0.34% to above 3,290 while the Shenzhen Component gained 0.5% to 9,830 on Monday, recouping losses from the previous session, and the offshore yuan rose to around 7.28 per dollar on Monday, rebounding from losses seen the previous week after the People’s Bank of China expectedly kept its benchmark lending rates unchanged for the sixth consecutive month in April 2025. China said on Monday that it “firmly opposes” any country making trade negotiations with the U.S. that come at Beijing’s expense, warning it would take “countermeasures” in a “resolute and reciprocal manner.” China has unveiled a plan to open its services sector further, aiming to attract more foreign investment amid rising trade tensions with the U.S. Meanwhile, the Chinese government ramped up fiscal support, with budget spending surging to CNY 9.26 trillion in the first quarter of 2025. Foreign direct investment into China sank by 10.8% from the previous year to about $36.9 billion in the first quarter of 2025. Hong Kong ( HSI ) market closed. India ( SENSEX ) rose 0.80% Australia ( AS51 ) market closed. The Australian dollar climbed to around $0.64 on Monday, approaching a four-month high as broad weakness in the US dollar continued to support commodity-linked currencies. The U.S. markets were closed on Friday, April 18, 2025, in observance of Good Friday. U.S. stock futures declined on Monday as markets reopened following an extended holiday weekend: Dow -0.78% ; S&P 500 -0.75% ; Nasdaq -1.03% . Investors are also bracing for a packed earnings week, with over 100 S&P 500 companies set to report, including tech heavyweights Tesla and Alphabet. Other major firms on the earnings docket include Verizon, AT&T, Boeing, American Airlines, and Intuitive Surgical. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: People’s Bank of China keeps LPR rate steady for 6th month Japan sees relief in trade tensions, China snaps eight-day winning streak Japan core inflation rate accelerates in March Australia’s unemployment rate stays low at 4.1%, March employment growth below forecasts Japan’s March trade surplus above forecasts as export growth outpaced imports

Source: Seeking Alpha