Asian markets settle down on Monday

Asian markets settled down on Monday, while Japan’s Nikkei 225 entering into correction territory on concerns about the global trade war ahead of the US President Donald Trump’s reciprocal tariffs beginning April 2. Market sentiments weakened further by tracking Wall Street’s fall last Friday with data showing the Federal Reserve’s preferred inflation gauge of core PCE rose 0.4% m-o-m in February and 2.8% y-o-y, continuing a stubborn plateau on the path to the Federal Reserve’s 2% target. Chinese shares declined even after China’s manufacturing activity expanded at its fastest pace in one year in March after policymakers pledged to step up monetary and fiscal stimulus. The official manufacturing purchasing managers’ index was 50.5, versus 50.2 in February. The non-manufacturing PMI, which measures activity in the services sector, came in at 50.8, up from February’s 50.4. South Korean shares dropped, marking its lowest level in nearly two months as authorities lifted the short selling ban. Meanwhile, markets in Malaysia, Singapore, and Indonesia were closed for the Eid-ul-Fitr holiday.