A mix of Asian stocks; Chinese gradually increase on Trump’s tariff report By Investing.com

Investing.com– Asian stocks were mixed on Tuesday, as Chinese stocks jumped on reports of a gradual U.S. tariff increase by Donald Trump, while a sharp decline in Japanese stocks weighed on other regional shares.

Asian shares fell sharply in the previous session as investors reassessed the likelihood of a US interest rate cut following last week’s better-than-expected payrolls data.

US stock index futures were higher in Asian trade on Tuesday. After taking a hawkish stance at the previous meeting, market participants will be looking ahead to a key rate hike later this week to assess the Federal Reserve’s interest rate outlook.

Chinese stocks rose slightly on news of US tariff hikes.

The China index rose 2 percent, the index rose 1.8 percent, and the Hong Kong index rose 1.5 percent.

Members of President-elect Donald Trump’s incoming economic team are considering a plan to gradually raise tariffs each month, Bloomberg News reported Tuesday.

This is aimed at reducing inflationary risks and increasing bargaining power, using executive powers under the International Emergency Economic Powers Act to increase monthly tariff increases by 2 to 5%, the report said.

The proposal is at an early stage and has not yet been presented to Trump, indicating that the concept is still in its infancy.

Trump has promised to impose tariffs of at least 60 percent on Chinese exports.

This week’s focus will be on a number of key economic indicators that will provide insight into China’s economic performance by the end of 2024. Additionally, December data and s figures will also arrive on Friday.

Japan’s Nikkei leads losses.

Japan’s index fell 1.7% after returning from a holiday on Tuesday, down 1.3%.

Australia rose 0.3%. Investors await December employment data on Thursday.

South Korea has not changed much amid the country’s ongoing political crisis.

The Bank of Korea cut its benchmark rate by 25 basis points on Thursday to support South Korea’s economy, which is struggling amid heightened political unrest, a Reuters poll showed, extending the move by a month.

Elsewhere in Asia, the Philippines’ index fell 0.7 percent, while Singapore’s edged lower.

India on Tuesday signaled the opening of the moratorium.

Asian stocks in 2018 Fewer chances of a Fed rate cut in 2025 face further downward pressure. The Fed cut inflation by 100 basis points in 2024, but indicated a smaller-than-expected cut in 2025 due to sticky inflation and a sluggish economy.

In , markets now expect only one rate cut this year, a sharp adjustment from the previous expectation of four cuts before the Fed’s December meeting.