Asia-Pacific markets were mixed on Wednesday as investors weighed uncertainty over United States President Donald Trump’s tariff policies and growing fears of a potential recession in the world’s largest economy.
The White House confirmed that the 25% tariffs on steel and aluminium would take effect on Wednesday for Canada and other nations but clarified that Trump no longer planned to raise tariffs on Canadian steel and aluminium to 50%.
In response, Australian stocks saw sharp losses, with the S&P/ASX 200 dropping 1.5%, while Japan’s Nikkei 225 edged up 0.3% and South Korea’s Kospi 200 gained 0.7%.
Investors also digested key economic data releases, with Japan’s producer price index meeting expectations at a 4% year-on-year increase, while South Korea’s unemployment rate fell to 2.7%, slightly below the previous reading of 2.9%.
Overnight in the United States, stocks struggled as the uncertainty surrounding new tariffs sent markets into turmoil.
The Dow Jones Industrial Average fell 478.2 points, or 1.1%, to close at 41,433.5. The S&P 500 slipped 0.8% to 5,572.1, while the Nasdaq Composite declined 0.2% to end at 17,436.1.
The ongoing trade policy uncertainty has brought the S&P 500 close to correction territory, which is defined as a decline of 10% from its recent high.
Commodity markets saw slight gains, with Brent crude adding 0.4% to reach US$69.56 per barrel, while spot gold prices rose 0.9% to $2,915.70 per ounce.
Chinese markets closed higher, with the Shanghai Composite rising 0.4% to 3,379.8, and the CSI 300 advancing 0.3% to 3,941.4.
In contrast, Hong Kong’s Hang Seng Index closed flat at 23,782.1, while India’s BSE Sensex also remained unchanged at 74,102.3.
European markets tracked losses from Wall Street, with major indices closing lower. The FTSE 100 dropped 1.2% to 8,496, while Germany’s DAX declined 1.3% to 22,328.8, and France’s CAC 40 lost 1.3% to 7,941.9.
