Asia-Pacific Markets Mixed as Wall Street Slides on Tariff Uncertainty

Asia-Pacific markets trade mixed as Wall Street slides on tariff uncertainty. Investors react to U.S. steel tariffs, inflation data, and market volatility.

Global Markets React to U.S. Tariff Developments

Asian markets experienced mixed trading on Wednesday as Wall Street faced volatility due to ongoing concerns over U.S. tariff policies and recession risks. The White House reaffirmed its commitment to 25% tariffs on steel and aluminum imports from Canada and other nations but abandoned a proposed increase to 50% for Canadian steel. This policy shift fueled uncertainty in global markets, prompting varied reactions across the Asia-Pacific region.

Asian Markets Performance

Japan’s Nikkei 225 reversed early losses and gained 0.31%, while the broader Topix index advanced 1.20%. Shares of Nissan rose 0.61% after CEO Makoto Uchida announced his resignation, paving the way for Ivan Espinosa to take over. Meanwhile, Nissan ended merger talks with Honda, though Honda remains open to future discussions. Honda shares slipped 0.31% in response to the news.

Japan’s wholesale inflation remained at 4% in February, staying above the Bank of Japan’s 2% target and increasing the likelihood of future rate hikes. Financial analysts at Nomura forecast interest rate increases in July 2025 and January 2026.

Asia-Pacific Markets Mixed as Wall Street Slides on Tariff Uncertainty

South Korea’s Kospi index climbed 1.31%, while Hong Kong’s Hang Seng dropped 0.23%. China’s CSI 300 fell 0.22% as government bond yields approached critical levels. In Hong Kong, tech company Robosense surged 18.28%, and jewelry retailer Chow Tai Fook saw a 7.15% gain.

Australia’s S&P/ASX 200 index declined 1.32%, reflecting broader market concerns. Indian markets also faced downward pressure, with the Nifty 50 falling 0.41% and the Sensex slipping 0.18%. Despite the market downturn, NSE India CEO Ashish Chauhan highlighted that India led the world in equity listings last year, raising $19.2 billion.

Wall Street’s Reaction and U.S. Market Trends

In the U.S., stocks tumbled overnight as investors reacted to tariff uncertainty. The S&P 500 dropped 0.76%, the Dow Jones Industrial Average plunged 478.23 points, and the Nasdaq declined 0.18%. The S&P 500 briefly turned positive before former President Donald Trump announced on Truth Social that tariffs on Canadian steel and aluminum would double to 50% from 25%, effective Wednesday. The move came in response to Ontario Premier Doug Ford’s electricity surcharge on U.S. exports.

The announcement exacerbated market volatility, pushing Wall Street closer to correction territory, defined as a 10% decline from a recent high. Investors closely monitored developments, assessing potential risks and weighing the broader economic impact of U.S. trade policies.

Key Economic Data and Upcoming Events

Market watchers are awaiting key economic indicators, including the U.S. Core Consumer Price Index (CPI) and inflation data, which will be released later today. Additionally, the Bank of Canada (BOC) is set to announce its overnight interest rate, followed by a press conference that could influence market sentiment.

Scheduled Events:

• 12:30 PM GMT – USD Core CPI m/m
• 12:30 PM GMT – USD CPI m/m
• 12:30 PM GMT – USD CPI y/y
• 01:45 PM GMT – CAD Overnight Rate
• 02:30 PM GMT – CAD BOC Press Conference

With global markets on edge, investors remain focused on policy developments and economic data to navigate the ongoing financial landscape.

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