Asia Markets Decline Amid Trump’s Tariff Threats; Thailand Suspends Trading After Earthquake
Asian markets experienced a mostly negative session on Friday as US President Donald Trump’s tariff threats continued to weigh on investor sentiment.
The uncertainty surrounding potential tariffs has kept investors on edge, contributing to market losses across the region.
Market Performance in Asia
Japan’s Nikkei 225 dropped 1.8% to close at 37,120.33, marking its lowest level in about two weeks.
South Korea’s Kospi fell by 1.89% to 2,557.98, while the Kosdaq index dropped 1.94% to 693.76.
In Hong Kong, the Hang Seng Index declined 0.65% to 23,426.6, while mainland China’s CSI 300 slipped 0.44% to 3,915.17.
Australia’s S&P/ASX 200 posted a modest gain of 0.16%, closing at 7,982, driven in part by political developments ahead of a May 3 national election announced by Prime Minister Anthony Albanese.
The Stock Exchange of Thailand suspended trading after a strong earthquake struck Myanmar, affecting the region. The SET index fell 1.1% after the earthquake prompted a state of emergency in Bangkok, Thailand’s capital.
Markets are reacting to ongoing concerns over the 25% tariffs President Trump plans to impose on cars not manufactured in the US While his announcement led to declines in automaker shares, investors also cautiously watched for any signals that Trump might ease the impact of these tariffs.
Trump had previously suggested that the upcoming tariffs, set to take effect on April 2, could be “very lenient”. However, his use of tariffs as a bargaining tool to address trade concerns with the European Union and Canada has kept uncertainty in the market.
Shares of Japanese and South Korean automakers saw further declines on Friday, following the announcement of potential tariffs. Toyota and Honda both lost significant ground, falling by 4.49% and 4.33%, respectively. Other manufacturers, such as Nissan and Mazda, also experienced drops.
In the US, the Dow Jones Industrial Average closed down by 0.37% on Thursday, while the S&P 500 and Nasdaq Composite saw declines of 0.33% and 0.53%, respectively. Investors are continuing to assess the potential economic impacts of the tariffs, with concerns over how they may affect inflation and growth in the global economy.
On the commodities front, gold prices reached a record high, with futures trading at $3,082.7 per ounce, as investors flocked to safe-haven assets amid the uncertainty. Oil prices also saw slight declines, as markets remained wary of the broader impact of escalating tariffs.
In response to the earthquake centered in Myanmar, which caused significant damage in nearby Bangkok, the Stock Exchange of Thailand (SET) announced the immediate suspension of all trading activities for the afternoon session. The suspension affected all markets, including the SET, mai, and TFEX. The exchange stated that further updates regarding operations would be shared through official channels.
As Trump’s tariffs are set to come into effect on April 2, global markets remain in a state of flux. Investors are taking a cautious approach, adjusting their portfolios in response to the potential economic disruption. Many are focusing on reducing exposure to sectors likely to be hit by tariffs, while also exploring opportunities to capitalize on market volatility.
The U.S. dollar and Treasury yields remained relatively stable, but concerns about inflationary pressures from tariffs could prompt further adjustments in the coming weeks. With economic data and tariff announcements expected to shape the outlook for the rest of the year, market volatility is likely to persist.
CNBC, Bloomberg, and the Associated Press contributed to this report.
