Melbourne, Australia, illuminated at night.
James O’Neil | Getty Image
The Asia-Pacific markets experienced a decline on Thursday as investors assessed U.S. President Donald Trump’s proposed tariffs on automobiles, semiconductors, and pharmaceutical imports, along with the Federal Reserve’s potential to maintain elevated interest rates for an extended period.
Trump indicated that the tariffs could be enforced as early as April 2, but did not clarify whether they would be specifically targeting certain countries or applied broadly.
Japan’s leading Nikkei 225 and the broader Topix index also closed down for the second consecutive day. The Nikkei 225 finished 1.24% lower at 38,678.04, and the Topix index fell 1.18% to 2,734.60.
Earlier in the day, the yen strengthened to its highest level in over two months, reaching 150.52 per U.S. dollar, driven by expectations of additional rate hikes from the Bank of Japan within the year.
In South Korea, the Kospi index ended down by 0.65% at 2,654.06, while the small-cap Kosdaq decreased by 1.28% to close at 768.27.
Mainland China’s CSI 300 recorded a decline of 0.29%, closing at 3,928.90, whereas Hong Kong’s Hang Seng Index dropped 1.60% to 22,576.98.
Australia’s S&P/ASX 200 fell for the fourth day in a row, closing 1.15% lower at 8,322.80.
The seasonally adjusted unemployment rate in Australia rose to 4.1% in January, aligning with Reuters’ projections.
Indian markets also faced setbacks, with the Nifty 50 down by 0.15%, and the BSE Sensex index declining 0.31% around 2:15 p.m. local time.
In the U.S., stocks continued their upward trend overnight, despite Federal Reserve meeting minutes revealing concerns regarding President Trump’s tariffs and a preference for a further reduction in inflation before easing interest rates.
The S&P 500 climbed 0.24%, concluding at 6,144.15, achieving its second consecutive record close, and even reached a new all-time high during the session. The Nasdaq Composite increased by 0.07% to finish at 20,056.25, while the Dow Jones Industrial Average gained 71.25 points, or 0.16%, to close at 44,627.59.
— CNBC’s Brian Evans and Pia Singh contributed to this report.
