Asian stocks traded mostly lower on Thursday, following mixed cues from Wall Street overnight. Concerns over a global trade war reignited after U.S. President Donald Trump’s latest tariff announcements, indicating plans for 25 percent “reciprocal” tariffs on European autos and other goods. During the first official Cabinet meeting of his new administration, Trump reiterated he is “not stopping” previously delayed tariffs on Canada and Mexico.
While a 30-day pause on those tariffs is set to expire on March 4, Trump indicated the tariffs would take effect on April 2, the same day he purportedly plans to announce reciprocal tariffs on other U.S. trade partners. This added to the uncertainty in the global markets. In Australia, the market traded notably higher on Thursday, recouping some losses from the previous two sessions.
The benchmark S&P/ASX 200 gained 32.30 points or 0.39 percent to 8,273.00, with gains especially seen in mining and energy stocks. Notable performers included Rio Tinto and Fortescue Metals, with both advancing by about 1 percent, and BHP Group edging up 0.4 percent. Oil stocks also showed positive movement, with Origin Energy gaining more than 1 percent and Woodside Energy and Santos edging up around 0.4 to 0.5 percent.
In the tech sector, declines were observed in stocks like Zip, WiseTech Global, and Appen. Among the big four banks, ANZ Banking and Westpac edged up, while National Australia Bank and Commonwealth Bank experienced minor declines. Gold miners showed strong performance, with Northern Star Resources and Newmont gaining over 2 percent each.
In other news, shares in Eagers Automotive soared more than 20 percent after outperforming its market despite a 25 percent slide in profit. Ramsay Health Care shares jumped almost 13 percent following the appointment of Goldman Sachs to advise on a potential sale of its European Santé stake. However, shares in IDP Education dived almost 11 percent after a significant earnings decline.
Medibank’s shares soared nearly 11 percent post a higher interim net profit report, and Qantas saw a 4 percent advance after announcing a $1.4 billion interim profit.
Asian markets react to tariff concerns
Economic data from the Australian Bureau of Statistics showed a seasonally adjusted 0.2 percent dip in new capital expenditure for the fourth quarter of 2024, missing forecasts for a 0.6 percent increase.
However, capex was up 0.6 percent on a yearly basis. The Aussie dollar traded at $0.631 on Thursday. Japanese markets traded modestly higher, reclaiming some losses from the previous days.
The Nikkei 225 Index closed the morning session at 38,198.96, up 56.59 points or 0.15 percent. Key performers included SoftBank Group, Fast Retailing, and Toyota. Conversely, losses were observed in Panasonic, Sony, and Canon.
Among other notable gainers, Fujikura surged almost 7 percent, while Itochu and Socionext gained around 5 percent each. Elsewhere in Asia, markets in China, Hong Kong, Malaysia, South Korea, Indonesia, and Taiwan were down between 0.2 and 0.9 percent each, while New Zealand posted a 0.7 percent gain. Singapore remained relatively flat.
On Wall Street, stocks showed a strong early session move to the upside on Wednesday but lost ground as the day progressed. The Nasdaq and the S&P 500 managed to close in positive territory. The tech-heavy Nasdaq ended the day up 48.88 points or 0.3 percent to 19,075.26, while the S&P 500 inched up 0.81 points to 5,956.06.
However, the Dow slid 188.04 points to 43,433.12. In Europe, the major markets moved to the upside. The German DAX Index rose by 1.6 percent, the French CAC 40 Index surged by 1.2 percent, and the U.K.’s FTSE 100 Index climbed by 0.7 percent.
Crude oil prices drifted lower on Wednesday, with West Texas Intermediate Crude oil futures for April settling lower by $0.31 at $68.62 a barrel, amid concerns about demand outlook due to the tariff policies potentially slowing global economic growth.
Photo by; Donna Elliot on Unsplash
