Asian-Pacific markets declined on Thursday, tracking overnight losses on Wall Street as trade fears resurfaced following reports that Washington is weighing new export restrictions to China.
Reuters reported that the Trump administration is considering curbs on exports to China made with U.S. software, citing a U.S. official and several individuals briefed on the discussions.
The proposed plan could extend to a wide range of items - from laptops to jet engines - though sources indicated that it may not move forward and remains one of several policy options under review.
by 11:45 am AEDT (12:45 am GMT), Australia’s S&P/ASX 200 was down 0.3%, Japan's Nikkei 225 lost 1.5%, and South Korea’s Kospi 200 dropped 0.7%.
Shares of SoftBank tumbled around 2.5% after the Japanese conglomerate announced plans to issue U.S.-dollar and euro-denominated bonds to fund its growing investments in artificial intelligence.
According to a Tokyo Stock Exchange filing, SoftBank will issue around US$2 billion in dollar-denominated bonds across two tranches and about €750 million (US$870 million) in hybrid notes, carrying interest rates between 6.5% and 8.25%.
Among data releases, the Bank of Korea kept its benchmark interest rate unchanged at 2.5% for the third straight meeting, matching expectations. Policymakers reiterated concerns over rising household debt, signalling a cautious approach to future monetary easing.
The declines followed a weak session on Wall Street overnight, where the Dow Jones Industrial Average fell 0.7%, the S&P 500 lost 0.5%, and the Nasdaq Composite slid 0.9%.
In commodities, Brent crude rose 2.1% to settle at US$62.59 a barrel after the U.S. imposed new Ukraine-related sanctions on Russia, targeting its oil producers.
Spot gold declined 0.6% to US$4,099.40 per ounce, extending losses from recent record highs.
In China, the Shanghai Composite slipped 0.1% to 3,913.8 and the CSI 300 fell 0.3% to 4,592.6.
Hong Kong’s Hang Seng Index dropped 0.9% to 25,781.8, while India’s BSE Sensex remained closed for a public holiday.
European markets were mixed overnight. London’s FTSE 100 gained 0.9% to close at a record 9,515.0, while Germany’s DAX rose 0.7% to 24,151.1. France’s CAC 40, however, slipped 0.6% to end at 8,206.9.
