Asian stocks showed mixed performance on Wednesday as markets digested U.S. President Donald Trump’s latest tariff threats. Japan’s Nikkei 225 and TOPIX fell by 0.4% and 0.3%, respectively, while Hong Kong’s Hang Seng dropped 0.7%, the worst in the region. Trump announced potential 25% tariffs on autos, pharmaceuticals, and semiconductors, with auto tariffs possibly beginning in April. Markets reacted with smaller losses than previous tariff announcements, hinting at a more resilient stance or possible negotiating tactics.
In contrast, South Korea’s KOSPI surged 1.8% to a five-month high, driven by improving political conditions after the trial of impeached President Yoon Suk Yeol concluded. Bargain buying helped South Korean markets recover from steep December losses, with local chipmakers SK Hynix and Samsung Electronics gaining 2% to 4% amid positive AI sentiment.
Chinese markets remained buoyant, with the Shanghai Shenzhen CSI 300 and Shanghai Composite rising 0.7% each, fueled by optimism over AI and government support after President Xi Jinping’s meeting with top tech CEOs. Singapore’s Straits Times index edged up 0.4%, supported by strong quarterly earnings from United Overseas Bank Ltd, despite the stock slipping 0.6% from record highs. Meanwhile, India’s Nifty 50 futures pointed to a muted open, facing the looming prospect of U.S. trade tariffs.