China’s regulators sought to calm markets on Monday as stocks and the renminbi experienced a shaky start to 2025, influenced by weak economic data and geopolitical uncertainty ahead of Donald Trump’s return to the U.S. presidency.

Mainland China’s CSI 300 index dropped by 0.2% on Monday, marking a 4.1% decline in the first three trading days of the year, making it Asia’s worst-performing major index so far in 2025. Small-cap stocks in the CSI 2000 index fell 6.6% since the year’s start. Meanwhile, Hong Kong’s Hang Seng index dipped by 0.4% on Monday, with a year-to-date decline of 1.2%.

Amid these declines, Chinese stock market regulators convened meetings with international investors, and the central bank reaffirmed its commitment to stabilizing the currency. This occurred alongside concerns about Trump’s plans to increase tariffs on Chinese exports.

“Right now, everyone is wondering what Trump 2.0 will bring,” said Jason Lui, head of Asia-Pacific equity and derivatives strategy at BNP Paribas. “It’s reasonable for investors to take some profit,” he added.

The renminbi fell to a 15-month low of Rmb7.33 against the dollar on Monday, despite the People’s Bank of China keeping the daily trading band for the onshore renminbi unchanged. Analysts linked the currency’s downward pressure to corresponding weaknesses in Chinese stocks. Kevin Liu, a strategist at CICC, attributed the pressure to weak manufacturing data, the dollar index reaching a two-year high, and the anticipated effects of Trump’s presidency.

In an effort to reassure investors, the Shanghai and Shenzhen stock exchanges emphasized the resilience and solid fundamentals of China’s economy during a weekend meeting with foreign institutions. They welcomed feedback and suggestions to address concerns about Chinese stocks, as outlined in a statement on Sunday.

On Monday, the central bank maintained its daily midpoint fixing rate for the renminbi at Rmb7.19, allowing it to trade within a 2% range. The state-owned Financial News stressed the central bank’s readiness to prevent excessive exchange rate volatility, emphasizing its “sufficient tools” to maintain currency stability.

Investor sentiment remained weak as long-term government bonds continued to attract buyers. Concerns over domestic consumption led to speculation that the central bank might further ease monetary policy. The yield on 10-year Chinese government bonds fell to 1.61% on Monday, nearing an all-time low.

Despite Beijing’s promises to boost domestic consumption following a prolonged property crisis, the year began on a subdued note. The Chinese People’s Congress is set to meet in March to outline its economic policy agenda for what analysts expect will be a challenging year.

Winnie Wu, chief China equity strategist at Bank of America, highlighted the need for policies aimed at stimulating consumption, supporting the private sector, and addressing youth unemployment. “In terms of the fundamental things to look for in 2025, we think investors need to see more on consumption,” Wu said.

Despite the rough start, analysts noted that Chinese stocks rebounded strongly in 2024, with the CSI 300 gaining 14.7% over the year. “We think the worst decline is over,” Wu concluded.

Vietnam’s gross domestic product (GDP) grew 7.09% in 2024, reaching $476.3 billion, up from a 5.05% increase in 2023, according to government data released on Monday. The growth was fueled by strong exports and robust foreign investment inflows.

GDP growth in the fourth quarter was 7.55%, marking the fastest quarterly expansion in over two years, the General Statistics Office (GSO) reported.

The Southeast Asian country, known as a regional manufacturing hub, capitalized on a recovery in global consumption despite enduring Asia’s strongest typhoon last year.

“This is a positive result amid challenges, including natural disasters, and lays a good foundation for growth in 2025,” Nguyen Thi Huong, head of the Statistics Office, stated during a press conference. The GSO report highlighted that exports in 2024 increased by 14.3% year-on-year, reaching $405.53 billion, driven by electronics, smartphones, clothing, and agricultural products.

Conversely, imports grew by 16.7% to $380.76 billion, resulting in a trade surplus of $24.77 billion.

The strong economic rebound was also supported by government efforts to boost coal imports for power generation, preventing electricity shortages seen in prior years. Coal imports rose 24.8% year-on-year to 63.8 million tonnes, while electricity generation grew 9.6%, reaching 293.3 billion kilowatt-hours.

Foreign investment inflows into Vietnam increased 9.4%, totaling $25.35 billion in 2024. Industrial production output rose 8.4%, while average consumer prices increased by 3.63%.

Vietnam has set an ambitious GDP growth target of 6.5% to 7.0% for 2025, with Prime Minister Pham Minh Chinh expressing optimism for an 8.0% growth rate.

“Going forward, Vietnam will actively monitor monetary policies, stabilize exchange rates, and closely watch major trading partners to implement timely measures,” Huong added.

South Korea’s Corruption Investigation Office for Senior Officials (CIO) has requested police to arrest suspended President Yoon Suk Yeol, following a failed attempt to detain him last week after a confrontation with his security detail.

On Monday, the CIO announced that it had sent a letter to the police on Sunday night, authorizing them to execute an arrest warrant against Yoon. The president was suspended from office pending a decision by the Constitutional Court regarding his impeachment.

The request comes after the CIO abandoned an attempt to arrest Yoon on Friday due to strong resistance from his security guards. After more than five hours of confrontation, the agency withdrew from the president’s residence, stating it was “almost impossible” to detain him.

The National Police Agency has identified legal issues with the CIO’s request and plans to discuss the matter further. Baek Dong-heum, the director overseeing the case, stated at a press briefing, “After examining the letter internally, we found that it is legally controversial. We reaffirm that we are investigating the case in accordance with the law and principles under the joint investigation team [with the CIO].” Baek did not elaborate on the specific legal concerns.

Local media reports indicate that Yoon’s lawyers filed a request with the Seoul District Court to cancel the search warrant, arguing that the CIO lacked the authority to investigate sedition charges. However, the court rejected the request on Sunday, ruling that the agency could include the charge as it relates to alleged misconduct under investigation.

The current arrest warrant is set to expire at midnight, but the CIO has stated it will seek an extension from the court.

Yoon was suspended from office on December 14 after National Assembly lawmakers voted to remove him following his declaration of martial law, which triggered significant political turmoil in South Korea. The Constitutional Court is now deliberating whether to uphold or reject the impeachment, a process that could take up to six months.

The CIO and police formed a joint investigation team last month to probe allegations that Yoon incited riots by declaring martial law on December 3 and deploying troops to the National Assembly and the National Election Commission. Yoon withdrew the declaration the following morning after lawmakers voted against it.

Over the weekend, Yoon’s supporters gathered outside his residence in Seoul’s Yongsan district, waving U.S. and South Korean flags and pledging to protect him. Meanwhile, thousands of protesters demanded his arrest.

The CIO asked Acting President Choi Sang-mok to order Yoon’s security service to execute the arrest warrant. However, Choi declined, citing the need to remain neutral in the case. Choi, who also serves as deputy prime minister and finance minister, was appointed by Yoon.

In a message to reporters, Choi stated, “Government officials should not be harmed in this difficult situation. I ask the authorities to ensure that citizens and officials are not harmed in the process of enforcing the law.”