Asia Markets Dip as Investors React to BoJ Pause and Trump’s Surprise Tariffs

Asia-Pacific markets mostly closed in the red Thursday as investors juggled two big headlines: the Bank of Japan holding interest rates steady and President Trump slapping new tariffs on South Korea and India.

Let’s break it down:

The Bank of Japan kept short-term rates at 0.5% for the fourth straight time — no surprise there. But the move still rattled investors a bit. The Japanese yen strengthened, and bond yields ticked up. The BoJ also hinted at a potential rate hike later this year after raising its inflation forecast, signaling Japan’s ultra-loose monetary policy may finally be nearing a shift.

Meanwhile, Trump’s latest tariff blitz has markets on edge. South Korea got hit with a blanket 15% tariff, and India faces a 25% duty plus an unspecified penalty. Investors are scrambling to figure out what it means for trade, tech, and geopolitics going forward.

Who Moved and Why:

• Japan’s Nikkei 225 bucked the trend and rose 02%, thanks to strong earnings from companies like Nissan, which surged nearly 5% despite posting a $530M loss.
• Samsung shares edged up 9%, even though profits fell short — a sign investors are still bullish on the chipmaker’s long-term potential.
• South Korea’s Kospi slid 28%, and auto stocks like Kia and Hyundai dropped after Trump’s tariff news hit.
• Hong Kong’s Hang Seng lost 6%, and China’s Shanghai Composite fell 1.18%, weighed down by weak economic data and falling copper prices.
• Australia’s ASX 200 dipped 16%, while India’s Nifty 50 managed a tiny gain after an early stumble.

South Korean shipbuilder Hanwha Ocean had a banner day, surging over 16% after joining trade talks in DC and signaling plans to ramp up operations at its Philly shipyard.

CNBC and Reuters contributed to this report.