Asian stock markets displayed mixed results on Wednesday as investors assessed the impact of President Donald Trump’s tariff policies following another day of losses on Wall Street.
Despite the volatility, US futures and oil prices showed signs of recovery.
The recent market fluctuations were driven by Trump’s decision to increase tariffs on Canadian steel and aluminum, which briefly pushed the S&P 500 more than 10% below its record high set last month. This move prompted a response from Ontario’s government, which agreed to remove an electricity surcharge that had been a point of contention.
Japan’s benchmark Nikkei 225 remained relatively unchanged, rising slightly by 0.1% to 36,819.09. Meanwhile, Hong Kong’s Hang Seng Index declined 0.9% to 23,566.42, and China’s Shanghai Composite slipped 0.2% to 3,371.92.
Other markets in the region showed varied performances. Australia’s S&P/ASX 200 dropped 1.3% to 7,786.20, whereas South Korea’s Kospi gained 1.5% to 2,574.82.
On Tuesday, the S&P 500 closed 9.3% below its all-time high, with a 0.8% decline for the day. The Dow Jones Industrial Average fell 1.1% to 41,433.48, while the Nasdaq Composite dipped 0.2% to 17,436.10.
Market analysts noted that investors are facing uncertainty over Trump’s evolving trade policies.
“Trump’s tariff policies continue to have a destabilizing effect on markets, with investors left guessing as to which measures will either be added or walked back next,” said Tim Waterer, chief market analyst at KCM Trade.
While the White House has acknowledged that the tariffs may cause economic “disturbance,” it has not provided specific details on how much impact the administration is willing to tolerate. Trump, for his part, commented on social media that the US and Canada could resolve trade issues by integrating their economies further.
Despite the market’s overall turbulence, some Big Tech stocks stabilized after recent declines. Tesla rose 3.8%, following Trump’s public endorsement of the company. Nvidia, which has been affected by the recent sell-off in artificial intelligence stocks, gained 1.7%, reducing its year-to-date losses to 19%.
A report on Tuesday indicated that the US labor market remains steady, with 7.7 million job openings recorded at the end of January, aligning with economists’ expectations.
In energy trading, US crude oil increased by 25 cents to $66.55 per barrel, while Brent crude rose 26 cents to $69.82 per barrel.
In currency markets, the US dollar strengthened against the Japanese yen, rising to 148.62 yen from 147.78 yen. Meanwhile, the euro edged down slightly to $1.0906 from $1.0919.
With input from US News & World Report.
