Asian markets showed mixed results on Friday as traders prepared for the anticipated wave of U.S. tariffs next week. Auto stocks continued their downward trend following President Donald Trump’s announcement of significant tariffs on vehicle imports.
In recent weeks, market sentiment has soured as the U.S. administration’s aggressive trade policy has generated anxiety, impacting both allies and adversaries alike, and fueling fears of a recession. Trump’s pledge to impose a 25% tariff on all vehicle imports into the U.S. overshadowed earlier expectations regarding reciprocal measures due on his “Liberation Day,” set for April 2.
Global leaders have expressed their dissatisfaction with the decision, with Canadian Prime Minister Mark Carney stating that the “old relationship” between Canada and the U.S. is over due to the evolving economic, security, and military ties.
Concerns about retaliatory actions have stoked fears of a prolonged global trade conflict and a resurgence of inflation, potentially prompting central banks to rethink plans for interest rate cuts.
Investor uncertainty over Trump’s policies has led to a shift from risk assets to safe havens like gold, which reached a new record high of $3,066.56 on Friday.
Analysts believe there is hope that negotiations could soften the impact of the tariffs, but most investors appear to be taking a wait-and-see approach.
After another day of losses on Wall Street, Asian equity markets ended mixed. Japanese auto giants, including Toyota, Honda, Nissan, and Mazda, all saw their stocks drop by up to 3.9%, contributing to a more than 2% drop in the Tokyo market.
In Seoul, Hyundai’s stock fell by 3.1%, while concerns over tariffs also led to declines in Shanghai, Taipei, and Manila. However, Chinese tech stocks rallied, lifting the Hong Kong market, and other markets such as Sydney, Singapore, and Wellington saw modest gains.
Investors are awaiting U.S. personal consumption expenditure (PCE) data, a key measure of inflation, hoping for more clarity on how Trump’s policies will affect the economy. This comes after recent reports showed consumer confidence had dropped to its lowest level since the pandemic.
Currency and Commodity Market Highlights:
- Yen strengthened against the dollar after Japan’s inflation exceeded expectations.
- Tokyo’s Nikkei 225 closed down by 2.1% at 37,011.66.
- Hong Kong’s Hang Seng Index saw a 0.4% gain, reaching 23,661.60.
- Shanghai Composite dropped by 0.3%, closing at 3,365.23.
Key Market Figures (as of 0230 GMT):
- Euro/USD: $1.0794
- Pound/USD: $1.2949
- Dollar/Yen: 150.78 yen
- WTI Crude Oil: $69.90 per barrel
- Brent North Sea Crude: $74.00 per barrel
Global Indices:
- New York Dow: Down 0.4% at 42,299.70
- London FTSE 100: Down 0.3% at 8,666.12
