Japanese and South Korean auto stocks fall
Japanese and South Korean auto stocks plunged on Thursday on the back of U.S. President Donald Trump’s 25% tariffs on all auto exports to the U.S.
That amount will cover over $460 billion worth of imports of vehicles and auto parts imported annually, according to a Reuters analysis of tariff codes included in a federal register notice.
Mazda Motor led losses in Japanese automakers, plunging 6.33% as at 12.08 p.m. local time.
Other stocks that logged steep losses include Isuzu Motors which fell 5.73% and Toyota Motor, which had dropped 5.2%.
Over in South Korea, Kia Corp slid 1.09% while Hyundai Motor was down 1.22%.
— Amala Balakrishner
Australian mining stocks saw substantial declines on Thursday, on the back of U.S. President Donald Trump’s fresh tariff announcement.
Sharp declines were seen in major miners, with Rio Tinto falling 2.81%, BHP Group dropping 2.07% and Fortescue sliding 2.04% as at 1.30 p.m. Australian Eastern Daylight Time.
Gold miners, meanwhile, traded mixed even as gold prices notched a record high.
Newmont Corporation and Northern Star Resources were up 1.91% and 1.99% respectively. Conversely, losses were seen in Evolution Mining, which was down 1.13% and Kingsgate Consolidated, which lost 0.34%.
— Amala Balakrishner
U.S. President Donald Trump’s latest tariff announcement “could potentially raise U.S. average tariff rates to levels not seen since the early 20th century,” J.P. Morgan Asset Management says.
“If these tariffs persist, they could materially impact inflation, as U.S. manufacturing struggles to ramp up capacity and supply chains pass on costs to consumers,” the asset management firm’s APAC chief market strategist Tai Hui wrote in a Thursday note.
The scale of the fresh tariffs, he added, raises concerns about growth risks. For instance, U.S. consumers may cut back on their spending on pricier imports while businesses might delay capital expenditures given the uncertainty about the full impact of the tariffs as well as potential retaliation from trading partners.
Against this backdrop, Tai says equities in Asia and the U.S. “may face pressure.”
Still, he sees pockets of opportunities in economies with “smaller tariff increases” such as Australia, the U.K., Brazil and Singapore.
— Amala Balakrishner
Asian currencies fluctuated sharply on Thursday as U.S. President Donald Trump’s tariff announcement undermined risk sentiment.
The Japanese yen, traditionally perceived as a haven during periods of market tumult, strengthened 1.06% against the dollar to $148.02.
Meanwhile, the offshore Chinese yuan slid 0.25% to 7.3132 against the dollar as at 9.13 a.m. Singapore time, after falling to a record low earlier.
Other Asia-Pacific currencies also weakened against the dollar.
The Korean won fell 0.19% against the dollar to 1,465.89 while the Australian dollar slipped 0.49% to 0.6265 against the dollar.
— Amala Balakrishner
The yield on 20-year Japanese government bonds (JGBs) fell slightly on Thursday to touch 2.121% as at 9.57 a.m. local time.
The yield had hit 2.085% – it’s lowest level in close to a month – earlier in the session.
The yield on 5-year JGBs, meanwhile, was last seen hovering at around 0.98%, notching its lowest level since Feb. 10.
The yield on 2-year JGBs, was last seen hovering at around 0.77%, hitting its lowest level since Feb. 6.
Yields fall when bond prices rise.
The moves come after U.S. President Donald Trump’s fresh tariff announcement.
The Japanese yen appreciated 0.82% against the U.S. dollar to $148.02.
— Amala Balakrishner
Japanese automaker Nissan has reportedly suspended part of its production line in Mexico, according to Nikkei.
Nikkei reported that the line has been used for production capacity adjustments, and has been repeatedly operated and stopped in the past. The latest stop was also planned.
Shares of Nissan plunged over 6.2% on Thursday as investors also absorbed tariff news out of the U.S.
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Japan’s Nikkei 225 opened over 4% lower on Thursday.
As at 9.26 a.m. local time, the benchmark was down 3.31%.
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Nikkei 225
The Nikkei 225 is down 10.45% since the start of the year.
Among the worst performing stocks were Advantest which lost 4.47%, SoftBank Group, which fell 4.62% and Toyota Motor which was down 3.37%.
Meanwhile, the broader Topix index was down 2.82%.
— Amala Balakrishner
Australia’s S&P/ASX 200 plunged 2.07% as at 10.48 a.m. Australian Eastern Daylight Time, following U.S. President Donald Trump’s fresh tariff rollout.
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S&P/ASX200
The index is down 4.62% since the start of the year.
The decline was broad-based across industries, and was led by the materials, energy and consumer staples sectors.
— Amala Balakrishner
Gold prices rose to another record high, lifted by developments in the trade war and geopolitical uncertainties.
Gold futures on the Commodity Exchange hit $3,183.60 per ounce.
The bullion is expected to have further room to run as global markets remain on edge, said analysts from Fitch Solutions’ research unit, BMI.
“Gold remains boosted by escalating trade uncertainties, heightened geopolitical tensions, a weaker U.S. dollar, increasing central bank purchases, and rising risks of recession,” said BMI analysts.
—Lee Ying Shan
President Donald Trump and the White House laid out the U.S. reciprocal tariff rates that more than 180 countries and territories will face under his sweeping new trade policy.
In charts posted on social media, the White House shows the effective tariff rates they claim other countries impose on American goods, including by “currency manipulation and trade barriers.”
An adjacent column shows the new tariff rates the U.S. will impose on each country or territory, including the European Union. The reciprocal rates are not necessarily the only U.S. tariffs these countries will face.
Trump held up the chart when he unveiled his tariff policy in the White House Rose Garden.
Chart of reciprocal tariffs.
Courtesy: Donald Trump via Truth Social
In addition to the sweeping country-by-country tariffs announced today, Trump also imposed a 10% baseline tariff that effectively ensures a tariff on any country that is not among the more than 180 singled out.
“All articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10%,” unless otherwise noted, the executive order signed this afternoon reads.
Trump also reserves the right to raise this baseline rate “should U.S. manufacturing capacity and output continue to worsen.”
Read the whole executive order here.
— Erin Doherty
