Asian markets fell on Friday as investor concerns surged after a U.S. appeals court reinstated Trump-era tariffs, ending a previous suspension. Trade tensions between Washington and Beijing have reignited, shaking confidence in a near-term deal.
China and Hong Kong Lead the Declines
Markets in Beijing and Hong Kong posted the steepest losses after U.S. Treasury Secretary Scott Bessent revealed that talks with China had recently stalled, dashing hopes for a lasting trade agreement.
As reported by Bloomberg:
š¹ The Shanghai Composite and CSI 300 each dropped by 0.6%
š¹ Hong Kongās Hang Seng Index plummeted by 1.5%
While Bessent expressed optimism that negotiations could resume, investors were rattled. Additional flashpointsālike the ongoing chip dispute, U.S. export restrictions on Chinese tech firms, and the soon-to-expire 90-day tariff truceāadded to the uncertainty.
Regional Markets Follow Wall Street Downward
Other Asian markets followed Wall Street, where U.S. indices ended the session far below intraday highs following the appeals courtās decision. S&P 500 futures dropped by 0.3%, with traders awaiting the Federal Reserveās favored inflation indicator.
President Trump condemned the earlier ruling that halted the tariffs, stating heās āconfident the Supreme Court will allow [tariffs] to stand.ā He also hinted at exploring other legal avenues to reimpose dutiesāsome of which may come into effect as early as July.
Tokyo Slumps on Inflation Surprise
In Japan, the Nikkei 225 fell 1.3%, while the Topix Index slid 0.7% after data showed Tokyoās consumer prices rose more than expected in May, potentially prompting the Bank of Japan to raise interest rates. Analysts are now considering a 25 basis point hike as early as July.
Other economic data provided some support:
š¹ Industrial production fell by just 0.8%, beating forecasts
š¹ Retail sales climbed 1.2%, also exceeding expectations
These figures boosted the yen, which in turn pressured Japanese exporters and weighed on equities.
Tech Stocks Slide in South Korea, Singapore
In South Korea, the Kospi dropped 0.5% as chipmakers lost momentum following the fading impact of NVIDIAās strong earnings report. In Singapore, the Straits Times Index dipped 0.3%.
Australiaās ASX 200 ended flat, with weak retail sales raising hopes for another interest rate cut by the Reserve Bank of Australia. In India, Nifty 50 futures rose 0.1%, suggesting a stronger open near the 25,000 mark.
One-Minute Summary:
Asian equities are under pressure. The reinstatement of Trumpās tariffs and stalled U.S.āChina trade talks have dampened investor optimism. Markets in China, Hong Kong, and Japan lead the losses, as global trade uncertainty once again takes center stage. No resolution appears to be in sight.
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