Asia report: Markets mixed on Trump's latest tariff threats

(Sharecast News) - Asia-Pacific markets were mixed on Thursday as investors assessed Wall Street's overnight gains alongside renewed tariff threats from US president Donald Trump. While Japan and Australia posted modest gains, weakness in Hong Kong and South Korea weighed on regional sentiment.

"The dollar gained strength in Asian markets on Thursday, accompanied by a rise in Treasury yields, as investors weighed the economic implications of tariffs under president Trump," said TickMill market strategy partner Patrick Munnelly.

"Asian stocks exhibited overall weakness amid volatile trading, with regional technology stocks showing limited reaction to Nvidia's strong earnings report.

"Despite releasing an optimistic growth forecast for the first quarter, Nvidia's results seemed to fall short of the high expectations investors have come to anticipate."

Munnelly noted that bitcoin hovered near the $86,000 level, while traditional safe haven gold continued its retreat from all-time highs.

"Concerns over the ongoing trade war continued to unsettle market sentiment.

"President Trump appeared to grant Canada and Mexico a temporary one-month reprieve from 25% tariffs, extending the deadline to 2 April; however a White House representative later suggested reverting to the original deadline of 4 March.

"Meanwhile, Europe emerged as a potential target, with Trump proposing a 25% 'reciprocal' tax on cars and other goods, details of which remain undisclosed."

Markets mixed as investors digest latest tariff news

Japan's Nikkei 225 rose 0.3% to 38,256.17, supported by strength in insurers and trading houses.

Sompo Holdings climbed 5%, while Fujikura and Itochu gained 4.81% and 4.34%, respectively.

The broader Topix index advanced 0.73% to 2,736.25.

China's Shanghai Composite edged up 0.23% to 3,388.06, with strong performances from Kangxin New Materials, Shanghai Diesel Engine, and Xinjiang Youhao Group, all gaining over 10%.

However, the Shenzhen Component slipped 0.26% to 10,927.51.

Hong Kong's Hang Seng Index fell 0.29% to 23,718.29, dragged lower by technology and telecom stocks.

Xiaomi Corporation plunged 5.68%, China Unicom lost 5.09%, and Trip.com declined 4.66%.

In South Korea, the Kospi 100 dropped 0.85% to 2,607.33, with notable losses in healthcare and tech.

Hanmi Pharm slumped 5.78%, Naver Corporation declined 5.4%, and Kogas fell 4.83%.

Australia's S&P/ASX 200 added 0.33% to 8,268.20, led by automotive and healthcare stocks.

Eagers Automotive surged 19.92%, Medibank Private jumped 9.95%, and Neuren Pharmaceuticals gained 8.9%.

New Zealand's S&P/NZX 50 climbed 0.71% to 12,540.87, bolstered by retail and tourism-related stocks.

KMD Brands rose 5.13%, Tourism Holdings added 4.6%, and infrastructure investment firm Infratil gained 3.62%.

In currency markets, the dollar was last up 0.51% on the yen, trading at JPY 149.86, as it gained 0.13% against the Aussie to ADU 1.5881, and advanced 0.22% on the Kiwi, changing hands at NZD 1.7596.

Oil prices moved higher, with Brent crude futures last up 1.03% on ICE to $73.28 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.95% to $69.27.

Trump threatens EU with fresh tariffs at cabinet meeting

At the top of the economic agenda was news that the US was preparing to impose a 25% tariff on European imports, with a particular focus on automobiles, president Donald Trump said overnight.

Speaking during a cabinet meeting, Trump indicated that the announcement would be made soon, adding that the measure would apply broadly to cars and other products.

The European Union currently imposes a 10% tariff on US passenger vehicles, compared to Washington's 2.5% rate.

US officials also expressed frustration over European value-added taxes, which start at 17.5%.

Meanwhile, China was reportedly set to acknowledge weakening domestic demand next week while outlining new financial stimulus measures to counter slowing growth.

The country's annual parliamentary meetings, known as the 'Two Sessions', were set to begin Tuesday with the Chinese People's Political Consultative Conference, followed by the National People's Congress.

The legislative gathering, which typically lasts about a week, is expected to conclude with a press conference featuring senior economic and foreign policy officials.

Investors will be watching for signs of Beijing's policy response to ongoing trade pressures.

Reporting by Josh White for Sharecast.com.