Asia markets mixed as Trump expands tariffs: Hang Seng slumps 1%, Nikkei extends gains

Asian markets ended mixed on Wednesday after US President Donald Trump escalated trade tensions with steep new tariffs targeting copper, semiconductors, and pharmaceutical products.

Meanwhile, deflationary pressures in China’s industrial sector raised fresh concerns about the country’s economic outlook.

Hong Kong and China stocks under pressure

Chinese markets slipped after the release of mixed inflation data.

While consumer prices rose 0.1% year-on-year in June — the first positive print since January — producer prices fell 3.6%, the steepest decline in over two years and the 33rd consecutive monthly drop, according to the National Bureau of Statistics.

The Shanghai Composite Index dipped 0.13% to 3,493.05.

The CSI 300 Index slipped 0.2%, while the Hang Seng Index in Hong Kong dropped 1.1% to 23,892.32, its largest single-day loss since June 19.

The Hang Seng Tech Index fell 1.8%, extending a recent slump in major Chinese tech stocks.

Japan: Weaker Yen Boosts Automakers

Japanese stocks ended higher as the yen continued to weaken, falling below 147 per dollar, which helped lift export-heavy sectors.

The Nikkei 225 rose 0.33% to 39,821.28, and the broader Topix gained 0.41% to 2,828.16.

Automakers led the advance, with Honda Motor gaining 3.4% and Toyota adding 0.9%.

Yoshinoya Holdings surged 6.5% after reporting a 9% year-on-year rise in quarterly net profit.

Other regional markets

Seoul’s Kospi Index climbed 0.6% to 3,133.74, its highest close since September 17, 2021, shrugging off renewed trade threats from the US.

Trump announced a 25% tariff on South Korean imports and criticized Seoul’s defense cost-sharing arrangement.

However, local defense and financial stocks rallied. Hanwha Aerospace jumped 4.3%, LIG Nex1 soared 8.6%, and Mirae Asset Securities climbed 6.8%.

Australian shares retreated as the country’s major mining and gold stocks came under pressure following Trump’s tariff announcement and weak data from China.

The S&P/ASX 200 fell 0.61% to 8,538.60, while the broader All Ordinaries Index declined 0.58% to 8,777.90.

Benchmark Indian indices ended lower on Wednesday as investors remained cautious ahead of the earnings season and the anticipated trade deal between India and the United States.

Selling pressure in IT and oil & gas stocks weighed on sentiment.

The Sensex fell 176.43 points, or 0.21%, to close at 83,536.08.

During the session, it dropped as much as 330.23 points to hit a low of 83,382.28.

The Nifty ended 46.40 points, or 0.18%, lower at 25,476.10.

Trade remained range-bound and volatile, continuing the market’s consolidation phase.

The Nifty attempted a recovery after an early dip, but late-session selling in select heavyweights dragged the index into negative territory.