Asian markets dropped Monday as U.S. President Donald Trump revived trade war fears, threatening 25% tariffs on European nations over Greenland. Japan’s Nikkei and Hong Kong’s Hang Seng both fell, while European allies dismissed the unilateral demands.

Investors reacted cautiously as geopolitical tensions rose. Trump’s comments unsettled global markets already wary of U.S. protectionism. Safe-haven assets like gold hit record highs, reflecting growing uncertainty. The U.S. is closed Monday for a holiday, leaving Asia exposed to weekend headlines.

China’s stocks held steady after the government reported GDP growth of 5% for 2025, meeting its target. Stronger-than-expected export figures helped offset soft domestic demand. However, fixed asset investment shrank more than forecast, exposing lingering weaknesses.

South Korean shares bucked the regional trend, rising over 1% on chip sector strength. Micron Technology’s $1.8 billion deal with Powerchip Semiconductor boosted sentiment. Samsung and SK Hynix gained, helping the KOSPI outpace peers despite broader tech sector retreats.