Asian markets presented a mixed picture on Friday as investors braced for a new wave of U.S. tariffs expected next week, while automobile manufacturers continued to suffer heavy losses following President Donald Trump’s decision to impose steep levies on vehicle imports.
Market sentiment has deteriorated in recent weeks, weighed down by the White House’s aggressive trade policies, which have unsettled both allies and rivals while stoking fears of a global recession.
Trump’s pledge to implement 25 percent tariffs on all automobiles entering the United States has overshadowed earlier indications of reciprocal measures set for April 2—dubbed “Liberation Day” by the administration.
Global Response and Inflation Fears
The announcement has drawn sharp criticism from governments worldwide. Canadian Prime Minister Mark Carney delivered a stark warning, declaring that the long-standing economic, security, and military partnership with Washington is effectively over.
Meanwhile, the prospect of retaliatory tariffs has heightened concerns about a prolonged global trade war and a potential resurgence of inflation, which could prompt central banks to reconsider planned interest rate cuts.
Uncertainty surrounding Trump’s trade policies has led investors to seek refuge in safe-haven assets such as gold, which surged to a new record high of $3,066.56 on Friday. Analysts suggest that while negotiations with Washington could still alter the final scope of the tariffs, investors are largely adopting a cautious, wait-and-see approach.
Market Reactions Across Asia
Following another negative session on Wall Street, Asian equity markets delivered mixed results. Auto stocks bore the brunt of the losses.
Tokyo: The Nikkei fell more than 2 percent, with Toyota, Honda, Nissan, and Mazda tumbling between 1.5 and 3.9 percent.
Seoul: The benchmark index dropped over 1 percent as Hyundai shares slid 3.1 percent.
Shanghai, Taipei, Manila: These markets also closed lower due to tariff-related concerns.
Nippon Steel: Shares plunged after the company announced plans to invest up to $7 billion in upgrading U.S. Steel if its massive acquisition proceeds—far surpassing its initial $2.7 billion investment estimate.
However, some markets bucked the trend:
Hong Kong: Chinese tech stocks rallied, pushing the Hang Seng Index higher.
Sydney, Singapore, Wellington: These markets posted gains despite broader economic uncertainties.
Focus on U.S. Economic Data
Investors are now looking ahead to the release of U.S. personal consumption expenditures (PCE) data, the Federal Reserve’s preferred measure of inflation. This report is expected to provide further insights into the economic impact of Trump’s trade policies.
Earlier this week, data showed that U.S. consumer confidence has fallen to its lowest level since 2021—when the pandemic was still disrupting global markets—due to mounting worries about rising prices.
Although figures confirmed that the U.S. economy grew slightly faster than previously estimated in the final quarter of last year, the news failed to generate significant market optimism.
Currency Markets React
In foreign exchange markets, the Japanese yen strengthened against the U.S. dollar after inflation data from Tokyo—often a leading indicator for Japan’s broader economy—came in higher than expected for March. This fueled speculation that the Bank of Japan may consider another interest rate hike in the near future.
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