Asian markets declined on Thursday, retreating despite a positive session on Wall Street that was buoyed by softer-than-expected US inflation data.
Investors in the region remained cautious, monitoring developments in global trade tensions, particularly the next steps in US President Donald Trump’s ongoing tariff policies.
Chinese markets led the regional downturn, with Hong Kong’s Hang Seng Index falling 0.6% to 23,463.92 and the Shanghai Composite slipping 0.4% to 3,358.73. Japan’s Nikkei 225 gave up early gains to finish 0.1% lower at 37,790.03, while South Korea’s Kospi edged down 0.1% to 2,573.64.
In other key markets, Australia’s S&P/ASX 200 lost 0.5% to 7,749.10, Taiwan’s Taiex shed 1.4%, and India’s Sensex slipped 0.1%. Meanwhile, Thailand’s SET index bucked the trend, rising 0.2%.
The declines in Asia followed a volatile but ultimately positive trading session in the US The S&P 500 gained 0.5% to 5,599.30, while the Nasdaq Composite surged 1.2% to 17,648.45, led by artificial intelligence stocks. The Dow Jones Industrial Average, however, dipped 0.2% to 41,350.93 after fluctuating throughout the session.
Investor sentiment was lifted after the latest inflation report showed US consumer prices rose less than expected in February, easing concerns about further interest rate hikes.
Despite the Wall Street rebound, uncertainty surrounding US trade policy weighed on Asian markets. Trump’s decision to impose 25% tariffs on all steel and aluminum imports took effect Wednesday, prompting swift retaliatory measures from Canada and the European Union.
Several industries, particularly those reliant on global trade, felt the impact. US companies like Harley-Davidson (-5.7%) and Brown-Forman, the maker of Jack Daniel’s whiskey (-5.1%), faced renewed pressure as European counter-tariffs targeted American exports.
European Commission President Ursula von der Leyen criticized the move, stating:
“Tariffs are taxes. They are bad for business and worse for consumers.”
Tech stocks led advances in Asia early Thursday, mirroring Wall Street’s recovery, but gains faded amid broader concerns over trade uncertainty. Taiwan’s tech-heavy Taiex initially rose 0.6% before closing lower, while Japan’s Nikkei saw early gains erased.
In currency markets, the US dollar weakened slightly to 147.78 Japanese yen, while the euro held steady at $1.0884. The yield on US 10-year Treasury bonds remained elevated, reflecting ongoing trade-related uncertainty.
Crude oil prices remained stable following a 2% gain in the previous session, with US benchmark crude trading at $67.58 per barrel and Brent crude at $70.90 per barrel. Gold prices climbed to within $13 of their all-time high, as investors sought safe-haven assets amid market uncertainty.
With input from the Associated Press and Reuters.
