Asian Markets Open Mixed; Nikkei and Hang Seng Rise as Tariff Uncertainty Persists

Major Asian stock markets showed mixed performance in early trading on Saturday, May 3, reflecting cautious optimism driven by some corporate earnings and economic data, but limited by lingering uncertainty over the global trade war and the impact of U.S.-imposed tariffs.

• Nikkei 225 (Japan): Opened with gains, rising 1.04% to 36,830.69 points. Optimism appears to be driven by corporate results and hopes for progress in trade negotiations, although Tokyo insists the US reconsider tariffs.
• Hang Seng (Hong Kong): It posted a strong advance, rising 1.74% to 22,504.68 points. Investors appear to be reacting positively to signs of potential dialogue between China and the US, although Washington's elimination of key tariff exemptions continues to weigh.
• Shanghai Composite (China): It traded lower, down 0.23% to 3,279.03 points. The trade dispute with the US remains a key factor, holding back mergers such as Bunge's with Viterra and generating caution in the continental market.
• KOSPI (South Korea): Showed a slight increase of +0.12%.
• S&P/ASX 200 (Australia): Up +1.13%.
• BSE Sensex (India): Up +0.32%.

The day in Asia is influenced by several key factors:

• Trade Tensions: The uncertainty generated by the global tariffs imposed by the Trump administration remains the main driver of volatility. Although there are signs of dialogue, the elimination of exemptions for low-cost products from China and Hong Kong and Japan's insistence on a review maintain caution. The impact of these tariffs is only just beginning to be felt in economic data and corporate results.
• Economic Data: Investors are analyzing mixed economic data. The recent U.S. employment report showed strength (177,000 jobs created in April, unemployment rate stable at 4.2%), dampening hopes of interest rate cuts by the Fed in the near term. However, the contraction in U.S. GDP in Q1 2025 and concerns about consumer confidence raise doubts about the sustainability of growth.
• Corporate Earnings: The results of the big tech companies in the US have been a major focus. While Meta and Microsoft reported solid earnings, Apple and Amazon showed weaker figures and warned about the impact of tariffs. These mixed results are influencing global sentiment.
• Market Preview: European and U.S. stocks closed mostly higher on Friday, boosted by jobs data and some corporate news, providing a relatively positive backdrop for the Asian opening. The Euro Stoxx 50 climbed above 5,200 points.

"Asian markets are oscillating between optimism due to specific results and widespread caution due to the lack of clarity on the trade front. The short-term direction will depend on new data and, above all, any concrete progress in the tariff negotiations." – Financial Markets Analyst.

Volatility is likely to continue to dominate Asian markets in the coming sessions. Investors will closely monitor any statements or developments related to US and Chinese trade policies, as well as upcoming global macroeconomic indicators. The strength of the Nikkei and Hang Seng at the opening suggests some risk appetite, but the weakness in Shanghai indicates that underlying concerns persist.

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