Asia-Pacific Markets See Mixed Trading Amid Wall Street Decline Following Trump’s Auto Tariffs

Asia-Pacific stock markets experienced mixed results on Thursday, as investors reacted to U.S. President Donald Trump’s announcement of a 25% tariff on automobile imports. Japan’s Nikkei 225 fell 0.6%, while South Korea’s Kospi dropped 1.39%. In contrast, mainland China’s CSI 300 rose by 0.33%, and Hong Kong’s Hang Seng Index gained 0.41%. India’s Nifty 50 also saw a 0.52% increase, reversing losses from the previous session, while Australia’s S&P/ASX 200 dipped 0.38%.

The decline in Wall Street markets added to the cautious sentiment. The S&P 500, Dow Jones, and Nasdaq all posted losses, with the tech-heavy Nasdaq dropping 2.04%. Major tech stocks, including Meta Platforms, Amazon, and Alphabet, struggled, leading to a broader sell-off in the sector. U.S. futures also pointed to lower trading, indicating ongoing concerns over market stability.

In China, industrial profits dropped by 0.3% in early 2025, continuing a three-year trend of declining earnings amid escalating global trade tensions. This development has heightened concerns over the country’s economic outlook, as policymakers face increased pressure to provide economic support. The announcement of new U.S. tariffs on auto imports added to the uncertainty surrounding global trade dynamics.

Shares of Asian automakers faced sharp declines following Trump’s tariff decision. Toyota, Honda, Nissan, and other major automakers saw their stock prices fall, with Japanese automakers hit hardest. South Korea’s Kia Motors and Chinese automakers like Nio and Xpeng also experienced significant losses, reflecting broader market worries about the long-term impact of the tariffs on global automotive supply chains.

source: cnbc