Stocks in Asia fell after Wall Street notched up its worst session of the year on lackluster US economic data. The dollar also declined against its peers, notably the euro. 

A gauge of regional shares opened lower, pulling off the four-month closing high struck Friday, helped by earnings from Alibaba Group Holding Ltd. Shares in mainland China, Hong Kong and South Korea all posted declines while Japan was closed for a holiday Monday. 

The drop echoed the downbeat mood in New York on Friday, as investors balanced signs of a cooling US economy against the prospect of the Federal Reserve showing no signs of rushing to trim interest rates. Data showed US inflation expectations rising to the highest level in almost three decades. 

“Amid the prevailing market weakness, a key question will be whether there are opportunities to buy the dip, given that the broader trend still leans on the upside,” Junrong Yeap, market strategist at IG Asia, wrote in a note.

Treasury futures slipped on Monday. Cash Treasuries trading in Asia is closed due to the holiday in Japan.

A gauge of the dollar weakened during early Asian trading.

“Dollar enthusiasm has waned somewhat due to a plethora of factors including gyrations on tariff headlines (and postponed deadlines), modestly negative US economic surprises and declining equity market volatility,” Barclays Plc analysts led by Audrey Ong wrote. “While US equities remain around record highs, there are also growing questions about sustainability of US exceptionalism.” 

The euro outperformed among Group of 10 currencies, up 0.5% against the dollar after Germany’s conservative leader Friedrich Merz said he’ll move quickly to form a new government following Sunday’s federal election victory.

In Asia, diagnostic kits and vaccine maker shares climbed as researchers in China said they discovered a new coronavirus in bats that enters cells using the same gateway as the virus that causes Covid-19.

Tariff Tensions

Chinese Vice Premier He Lifeng expressed “serious concern” over President Donald Trump’s 10% tariff hike on Chinese goods in a call with Treasury Secretary Scott Bessent, China Central Television reported Friday. For his part, Bessent also signaled concerns on a host of issues with China, including “economic imbalances,” the US Treasury said.

The Trump administration told Mexican officials that they should put their own duties on Chinese imports as part of their efforts to avoid tariffs threatened by the US president, according to people familiar with the matter.

Separately, Trump is directing the Committee on Foreign Investment in the United States to restrict Chinese spending on technology, energy and other strategic US sectors, his administration’s latest salvo against the world’s second-largest economy.

In corporate news, Berkshire Hathaway Inc. is looking to increase ownership in Japan’s five largest trading houses “over time,” Warren Buffett said in an annual letter to shareholders. Saipem SpA and Subsea7 SA agreed in principle to create an oil services company with a combined xacklog of €43 billion and expected revenue of about €20 billion.

Key events this week:

  • Eurozone CPI, Monday

  • Israel rate decision, Monday

  • Singapore CPI, Monday

  • BOE Deputy Governors Clare Lombardelli and Dave Ramsden speak, Monday

  • Germany GDP, Tuesday

  • South Korea rate decision, Tuesday

  • Taiwan industrial production, Tuesday

  • US consumer confidence, Tuesday

  • ECB Governing Council member Joachim Nagel delivers Bundesbank’s annual report, Tuesday

  • Richmond Fed President Tom Barkin speaks, Tuesday

  • Taiwan GDP, Wednesday

  • Thailand rate decision, Wednesday

  • US new home sales, Wednesday

  • Nvidia earnings, Wednesday

  • G-20 finance ministers and central bank governors meet in Cape Town though Feb. 27, Wednesday

  • Atlanta Fed President Raphael Bostic speaks, Wednesday

  • Brazil unemployment, Thursday

  • Eurozone consumer confidence, Thursday

  • Mexico unemployment, trade balance, Thursday

  • Spain CPI, Thursday

  • US GDP, durable goods, initial jobless claims, Thursday

  • ECB publishes account of Jan. 29-30 policy meeting, Thursday

  • Canada GDP, Friday

  • Chile industrial production, unemployment, Friday

  • France CPI, GDP, Friday

  • Germany CPI, unemployment, Friday

  • India GDP, Friday

  • Japan Tokyo CPI, industrial production, retail sales, Friday

  • Sri Lanka CPI, trade, Friday

  • US PCE inflation, income and spending, Friday

  • Chicago Fed President Austan Goolsbee speaks, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.4% as of 9:04 a.m. Tokyo time

  • Hang Seng futures fell 0.3%

  • Australia’s S&P/ASX 200 fell 0.6%

  • Euro Stoxx 50 futures rose 0.1%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro rose 0.2% to $1.0475

  • The Japanese yen was little changed at 149.28 per dollar

  • The offshore yuan was little changed at 7.2534 per dollar

Cryptocurrencies

  • Bitcoin rose 0.5% to $96,247.18

  • Ether rose 0.5% to $2,822.58

Bonds

  • Australia’s 10-year yield declined four basis points to 4.47%

Commodities

  • West Texas Intermediate crude was little changed

  • Spot gold was little changed

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