Asian stocks wavered on Tuesday as investors assessed the potential impact of U.S. President Donald Trump’s tariff threats. Hong Kong’s Hang Seng index dropped more than 2%, while mainland China’s Shanghai Composite closed flat. Japan’s Nikkei 225 ended the day 0.46% higher, and South Korea’s Kospi index fell 0.62%.
Australia’s ASX 200 remained flat. Private equity firm KKR announced plans to acquire Japanese software developer Fuji Soft, and Fuji Soft shares traded marginally higher. Japan’s 5-year government bond yield rose to 1.165%, its highest level since October 2008.
Asian stocks and tariff uncertainty
India’s Nifty 50 gained 0.47% in early trade, marking its seventh consecutive positive session if the gains hold. The Indonesian rupiah depreciated 0.45% against the U.S. dollar, hitting its lowest level since June 1998.
Shares of Chinese electric vehicle maker BYD fell as much as 3.22% despite posting a 73.1% surge in net profit for the fiscal year 2024. Xiaomi shares plunged 5.61% after the company conducted an upsized $5.5 billion share sale to fund its electric vehicle manufacturing plans. According to minutes from the central bank, the Bank of Japan may continue raising interest rates if inflation and economic conditions align with its outlook.
Japan’s Topix index hit an eight-month high of 2,818.36 on Tuesday morning. Shares in South Korea’s Hyundai Motor rose 5.16% after announcing a $21 billion investment in the U.S., including a new $5.8 billion steel plant in Louisiana that aims to create over 1,400 jobs.
Image Credits: Photo by Teng Yuhong on Unsplash
