Asian Shares Decline Amid Tariff Concerns
Asian stock markets fell on Friday, following a turbulent session on Wall Street, as investors reacted to President Donald Trump’s recent announcement of new tariffs on 68 countries and the European Union, set to take effect in seven days.
Trump’s decision, which moved up the initial tariff deadline from August 1, has added a layer of uncertainty to an already fraught trade landscape.
Market Performance
- Japan’s Nikkei 225 decreased by 0.4%, reaching 40,914.66.
- South Korea’s Kospi dropped by 2.8%, closing at 3,154.53.
- Hong Kong’s Hang Seng index fell by 0.2% to 24,726.38.
- The Shanghai Composite index slipped 0.1% to 3,570.21.
- In Australia, the S&P ASX 200 fell 0.8% to 8,676.80.
- India’s BSE Sensex dropped 0.4% to 81,185.58.
- Taiwan’s TAIEX decreased by 0.4% to 23,453.56.
Market Analysts Weigh In
Benjamin Picton, senior market strategist at Rabo Bank, remarked, “US and European equity futures are pointing negative, Asian stocks are taking a beating and the DXY index is still rising.” He criticized Trump’s approach, stating, “The USA is cherry-picking high value-add industry for its own economy while forcing trading partners to grant preferential market access for its exports and supply it with cheap imports. Make no mistake, this is imperial trade.”
Mizuho Bank suggested a shift in dynamics, noting that “Asia (and in particular Southeast Asia) which was harder hit post-‘Liberation Day’ now appear to be in a better position by virtue of tariffs differentials though intra-regional differences remain small.”
Wall Street Overview
On Thursday, U.S. stocks continued to decline after an initial surge among technology shares faded. The S&P 500 fell 0.4%, marking its third consecutive loss. Despite this, the index saw a 2.2% gain in July and is up 7.8% year-to-date.
- The Dow Jones Industrial Average decreased by 0.7%.
- The Nasdaq Composite slipped less than 0.1%.
Approximately 70% of S&P 500 stocks declined, with healthcare companies leading the downward trend. Following a White House call for reductions in drug prices, major healthcare stocks faced pressure, including:
- Eli Lilly & Co., down 2.6%
- UnitedHealth Group, falling 6.2%
- Bristol-Myers Squibb, dropping 5.8%
Tech Sector Resilience
However, gains in some major tech stocks helped cushion the overall market downturn. Meta Platforms surged 11.3% after vastly exceeding sales and profit estimates. Microsoft rose 3.9%, boosted by strong earnings and positive updates on its Azure cloud computing services, which are central to its AI initiatives. These large technology companies continue to drive much of the market’s upward momentum amid optimism about artificial intelligence.
Commodities and Currency Movements
In commodity trading on Friday, U.S. benchmark crude oil edged down by 5 cents to $69.21 per barrel, while Brent crude fell 3 cents to $71.67 per barrel. Currency markets saw the U.S. dollar increase slightly to 150.68 Japanese yen from 150.67 yen, while the euro rose to $1.1418 from $1.1421.
