Asia-Pacific markets posted losses in early Asian trade on Wednesday as investors reacted to the imminent rollout of new United States tariffs targeting specific countries.
As of 11:10 am AEST (1:10 am GMT), Australia’s S&P/ASX 200 dropped 1.6%, South Korea’s Kospi 200 slipped 0.5%, and Japan’s Nikkei 225 fell 3.1%.
The latest round of tariffs, confirmed by the White House, will build on a 10% baseline duty implemented over the weekend. Cumulatively, Chinese goods will now face a 104% tariff rate starting Wednesday.
Overnight, U.S. stocks ended in negative territory for a fourth straight session. Dow Jones Industrial Average lost 0.8%, the S&P 500 fell 1.6%, and the Nasdaq Composite dipped 2.2%.
In commodities, Brent crude declined 2.2% to US$62.82 per barrel, touching fresh four-year lows, while spot gold was little changed at three-week lows of US$2,982.25 per ounce.
Despite the tariff concerns, Chinese equities posted gains on Tuesday. The Shanghai Composite rose 1.6% to 3,145.5, while the CSI 300 added 1.7% to close at 3,650.8.
However, the Chinese yuan weakened further, hitting a record low in offshore trading at ¥7.424 per U.S. dollar. The People’s Bank of China also set its daily midpoint at ¥7.2038, the weakest level since 2023.
Hong Kong’s Hang Seng Index advanced 1.5% to 20,127.7, and India’s BSE Sensex rose 1.5% to 74,227.1.
European markets followed suit with a rebound, as London’s FTSE 100 rose 2.7% to 7,910.5, Germany’s DAX climbed 2.5% to 20,280.3, and France’s CAC 40 added 2.5% to 7,100.4.
