Market Reactions to New US Tariffs

Asia-Pacific stock markets showed mixed reactions on Thursday following US President Donald Trump's announcement of a new 25% tariff on imported cars and light trucks. This move directly targets foreign automakers and has raised concerns over escalating trade tensions.

Impact on Regional Indices

The impending tariffs, effective from April 2, led to declines in several regional indices as investors feared the potential impact on exports. Notable decreases were observed in Japan's Nikkei 225, which fell by 0.82%, and South Korea's Kospi, which dropped by 1.45%. Australia's S&P/ASX 200 also saw a loss of 0.38% by the close of its trading session.

Positive Movements Amidst Uncertainty

Despite the overall negative sentiment, some markets managed to post gains. The Shenzhen Composite in mainland China improved by 0.20%, while the Shanghai Composite gained 0.24%. Hong Kong's Hang Seng index rose by 0.85%, showcasing resilience in the face of trade war fears.

Currency Market Reactions

In the currency markets, the dollar experienced a slight downturn against the Japanese yen, decreasing by 0.21% to trade at ¥150.2530. This movement reflects the broader uncertainty and cautious stance among investors regarding the future of international trade relations.