Asia-Pacific Markets Mixed as Trump Tariffs Threaten Growth

Asia-Pacific stocks mixed as Trump tariffs on Brazil and copper loom; Singapore’s Straits Times Index hits new record high.

Asia-Pacific markets traded mixed on Thursday as investors balanced fresh central bank decisions with renewed trade tensions sparked by U.S. President Donald Trump’s latest tariff moves.

The Bank of Korea held interest rates steady at an almost three-year low, matching market expectations and providing some support to local equities. South Korea’s Kospi gained 0.24%, while the tech-focused Kosdaq rose 0.44%. Meanwhile, Trump confirmed that a 50% tariff on Brazilian imports will go into effect on August 1, alongside a previously announced 50% duty on copper imports. The protectionist measures have added uncertainty to the global trade outlook, keeping investors on edge.

Asia-Pacific Markets Mixed as Trump Tariffs Threaten Growth

Despite the cautious mood, Singapore’s benchmark Straits Times Index continued its upward momentum, advancing for a fourth straight session. The index climbed 0.47% to reach a fresh record high of 4,077.41 points as of mid-morning trading, according to LSEG data. Elsewhere in the region, Japan’s Nikkei 225 reversed early losses to close up 0.66%, while the Shanghai Composite rose 0.57% and Hong Kong’s Hang Seng edged 0.17% higher. Australia’s S&P/ASX 200 was also in positive territory, up 0.63%.

Commodity markets were relatively steady. Gold traded at $3,331.35 per ounce, up 0.29%, while silver rose 0.19% to $36.80. Oil prices were mixed, with Brent crude at $70.20 per barrel, up 0.19%, and WTI crude slightly lower at $68.38, down 0.3%.

Bond markets saw the U.S. 10-year Treasury yield at 4.4335%, the UK 10-year gilt at 4.6010%, and Germany’s 10-year bund at 2.6315%. In other economic data, U.S. crude oil inventories showed a build of 7.1 million barrels, significantly above the expected draw of 1.7 million barrels, a development that may weigh on oil prices if demand concerns persist.

Looking ahead, traders will watch for the latest U.S. unemployment claims figures, due at 06:00 PM GMT, for further signs of economic strength and clues on the Federal Reserve’s next policy moves.

Market participants remain wary as trade tensions escalate, with Trump’s aggressive tariff measures adding to broader concerns about protectionist policies and their potential drag on global growth.

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