Asian shares slid on Tuesday as the U.S. announced curbs on China investments and tariff threats dented investor sentiment. Japan’s Nikkei 225 led losses in the Asia-Pacific region, falling more than 1% to close at 38,237.79. The Topix also fell 0.43% to close at 2,724.7.
South Korea’s KOSPI traded 0.57% lower at 2,630.29, while the small-cap Kosdaq fell 0.50% to 769.43.
The Bank of Korea cut rates to 2.75% from 3% in an effort to stimulate the slowing economy. South Korea has been facing political uncertainty due to the impeachment proceedings against President Yoon Suk Yeol. Hong Kong’s Hang Seng Index fell 1.36% in its last hour of trade, and mainland China’s CSI 300 dipped 1.11% to 3,925.65 amid escalating trade tensions with the U.S. Australia’s S&P/ASX 200 fell 0.68% to close at 8,251.9.
Shares of Japanese trading houses in Berkshire Hathaway’s portfolio rose after Warren Buffett committed to increasing ownership for the long term.
Sumitomo Corp. and Mitsubishi Corp.
Asian markets react to U.S. curbs
shares rose 8% and 6.76%, respectively, while Mitsui and Co. climbed 7.01% and 6.07%. Itochu Corp.
inched up 0.75%. Nissan shares declined sharply, slipping as much as 9% before paring losses to trade 7.72% lower. The automaker is dealing with the fallout of failed merger talks and is exposed to President Donald Trump’s plans to go ahead with tariffs on Canada and Mexico.
Overnight in the U.S., the S&P 500 lost 0.5%, closing at 5,983.25, while the Nasdaq Composite fell 1.21%, ending the session at 19,286.92. The Dow Jones Industrial Average inched up 33.19 points, or 0.08%, to close at 43,461.21. Economists at Bank of America warned that stagflation risks are growing due to “growth-negative policies” such as deportations of undocumented workers, government job cuts, threats of higher tariffs, and a growing risk that fiscal stimulus will be modest and delayed.
