Asian markets mixed as US tech earnings await amid trade war turmoil

Asian shares were mixed on Monday following the Easter weekend holiday, with some markets still closed.

US futures were lower as US tech companies prepared to release their earnings after the recent spate of market turmoil brought on by President Donald Trump's trade war.

'One thing that's absolutely clear and no longer debatable is that the reputational hit to the US brand is real, and it's not fading quietly into the next news cycle," Stephen Innes of SPI Asset Management said in a commentary. 

Unconfirmed reports said China has stopped its imports of some US farm products and liquefied natural gas to avoid paying steep tariffs it imposed in retaliation for Trump's tariffs of up to 145 per cent on imports of Chinese products.

US President Donald Trump's trade war remains a source of deep uncertainty. Economists worry his use of sharp tariff hikes could cause a recession if fully implemented and left in place for a while.

Tokyo's Nikkei 225 index lost 1 per cent to 34,368.42 in the absence of signs of significant progress toward a trade deal with Trump. Japanese automakers, in particular, are facing 25 per cent tariffs on exports to the US of autos and auto parts.

The Shanghai Composite index gained 0.3 per cent to 3,244.44, while the Kospi in South Korea was nearly unchanged at 2,484.23.

Taiwan's Taiex lost 1.2 per cent.

Markets were closed in Hong Kong and Australia.

US markets were shut on Friday and were mixed at Thursday's close. The Dow industrials sank 1.3 per cent, while the S&P 500 edged up 0.1 per cent. The Nasdaq composite shed 0.1 per cent.

Treasury yields rose early Monday.

Big Tech's Magnificent Seven companies, a group consisting of Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms kick off earnings season this week. Since Trump's inauguration, their combined market value had plunged by $3.8 trillion, or 22 per cent, as of April 20.

Trump's tariffs are wreaking havoc with supply chains in China and other key markets around the world.

Tesla, which makes its electric vehicles in Shanghai, is scheduled to release its full financial report Tuesday after already revealing that its first-quarter car sales dropped by 13 per cent from the same time last year.

Also early Monday, US benchmark crude oil sank $1.20 to $62.81 per barrel. Brent crude, the international standard, gave up $1.20 to $66.76 per barrel.

The US dollar bought 141.08 Japanese yen, its weakest level since September, down from 141.80 yen. The euro rose to $1.1473 from $1.1404.

A recent drop in the dollar has economists worried that it might reflect something more ominous than the usual ups and downs as Trump tries to reshape global trade: a loss of confidence in the US as a safe haven for investments.

In the bond market, the yield on the 10-year Treasury rose to 4.35 per cent from 4.32 per cent late Thursday.