FX.co ★ Asian Shares Mixed; Nikkei Underperforms After BoJ Ueda's Comments

Asian markets experienced varied outcomes on Monday, driven by renewed apprehensions regarding potential tariffs under President Trump and uncertainties surrounding the Federal Reserve's policy direction.

The US dollar strengthened against the yen during Asian trading, while oil posted slight gains amid growing tensions between Russia and Ukraine. Gold prices increased by almost 1 percent, recovering from significant declines last week.

In China, the Shanghai Composite Index concluded the day 0.21 percent lower at 3,323.85, relinquishing early gains. Meanwhile, Hong Kong's Hang Seng Index advanced by 0.77 percent to 19,576.61 following the announcement from China's securities regulator about expanding the Stock Connect program's scope.

Japanese markets suffered noticeable declines after Bank of Japan Governor Kazuo Ueda reiterated the possibility of further rate hikes while expressing the need for greater clarity on US economic policy under the impending Trump administration. Investors also processed discouraging data, with Japan's core machinery orders declining for a second straight quarter. Consequently, the Nikkei Average slipped by 1.09 percent to 38,220.85, and the broader Topix Index decreased by 0.73 percent to 2,691.76. Pharmaceutical stocks were the hardest hit after President Trump nominated vaccine skeptic Robert F. Kennedy Jr. as U.S. Secretary for Health and Human Services.

In Seoul, the stock market saw significant gains, with the Kospi Index rising by 2.16 percent to close at 2,469.07. Samsung Electronics surged 6 percent after announcing an unexpected stock buyback plan.

Australian markets also ended higher, primarily driven by increases in mining and consumer staple stocks. The S&P/ASX 200 inched up by 0.18 percent to 8,300.20, and the All Ordinaries Index similarly rose by 0.18 percent to 8,554.40. Uranium stocks Boss Energy and Deep Yellow jumped over 7 percent each, reacting to Russia's weekend ban on enriched energy exports to the United States.

Meanwhile, across the Tasman Sea, New Zealand's S&P/NZX 50 Index concluded the day 0.63 percent higher at 12,764.65, benefiting from an improvement in the Services PMI for October.

In the United States, stock markets declined sharply on Friday. The yield on the 10-year Treasury note reached a six-month high after recent economic data highlighted strong inflation and retail sales, alongside remarks from leading Federal Reserve officials, including Chair Jerome Powell, which reduced the likelihood of a Federal Reserve rate cut in December. Data earlier indicated robust retail sales in October, suggesting economic dynamism as the holiday shopping season approaches. An additional report showed unexpected increases in both import and export prices, further fueling concerns regarding persistent inflation. Consequently, the technology-heavy Nasdaq Composite fell by 2.2 percent, the S&P 500 dropped 1.3 percent, and the Dow Jones Industrial Average declined by 0.7 percent.