Impact of US Tariffs on Asia-Pacific Markets

As the new US tariffs on imports from China, Canada, and Mexico took effect, the Asia-Pacific markets showed a mixed response. The implementation of these tariffs has led to immediate reactions from affected countries, with China and Canada announcing their countermeasures.

Retaliatory Measures by China and Canada

China has decided to impose a 15% tariff on US chicken, wheat, corn, and cotton, along with a 10% tariff on a range of other products including soybeans, pork, beef, seafood, fruits, vegetables, and dairy products, starting March 10. Canada has also announced its plans for retaliatory tariffs, signaling a potential escalation in trade tensions.

Market Movements Across the Region

At 7:08 am CET, Japan's Nikkei 225 experienced a significant drop, decreasing by 1.37% or 520 points. Similarly, Australia's S&P/ASX 200 closed its trading session with a 0.58% loss. In contrast, South Korea's Kospi remained flat, and mainland China's Shenzhen Composite saw a slight improvement of 0.35%. The Shanghai Composite also gained 0.15%, while Hong Kong's Hang Seng index decreased by 0.31%.

Currency Market Reactions

The dollar remained stable against the Japanese yen, trading at ¥149.2870 at 7:13 am CET, indicating a cautious approach by investors amidst the unfolding trade developments.