Asia-Pacific markets show mixed movements amid global tariff updates

ASIA-PACIFIC: The latest CNBC story reported that Asia-Pacific markets experienced a mixed trading session on Friday following Wall Street’s overnight rally. Investors reacted to news that U.S. President Donald Trump signed a memorandum to explore reciprocal tariffs on foreign countries, though the new levies have not been enacted yet.

In mainland China, the CSI 300 Index rose by 0.87%, while Hong Kong’s Hang Seng Index saw a significant surge, climbing 3.48% in its final hour of trading. The Hong Kong index is on track for its strongest weekly performance since October, driven by positive momentum from previous sessions.

South Korea also saw modest gains, with the Kospi index rising 0.31% to close at 2,591.05 and the smaller Kosdaq Index advancing by 0.94% to 756.32. The country also reported a slight improvement in its unemployment rate, which decreased to 2.9% in January from a three-year high of 3.7% the month prior.

In Japan, the Nikkei 225 ended the day 0.79% lower at 39,149.43, while the broader Topix index lost 0.23%, settling at 2,759.21, as investors digested the latest global developments. Meanwhile, in India, the Nifty 50 and BSE Sensex indices experienced declines, losing 0.82% and 0.83%, respectively, amid volatile trading. India’s wholesale inflation for January rose by 2.31%, slightly below the 2.5% forecast, offering some relief for investors.

In Australia, the S&P/ASX 200 edged up by 0.19%, closing at 8,555.80. Southeast Asia also showed signs of economic strength, with Singapore’s economy expanding by 4.4% in 2024, its fastest growth since 2021. The country’s GDP grew 5% year-on-year in the fourth quarter, exceeding expectations of 4.7%. Despite this, the Straits Times Index traded 0.19% lower during the final hour of trading.

Malaysia also reported solid economic growth, with its GDP rising 5.1% in 2024, surpassing the 4.8% estimate. The country’s fourth-quarter growth of 5% outpaced expectations as well.

In the United States, stocks surged following fresh inflation data and the signing of President Trump’s tariff memorandum. The Dow Jones Industrial Average rose by 342.87 points, or 0.77%, to close at 44,711.43. The S&P 500 climbed 1.04% to 6,115.07, and the Nasdaq Composite advanced by 1.50% to 19,945.64.

The positive market reaction followed news that the U.S. would examine reciprocal tariffs, with Trump emphasizing that non-tariff trade policies of foreign countries could be deemed unfair and lead to tariffs in return.

As markets continue to digest these global economic developments, traders are keeping a close eye on tariff-related announcements and economic data from the Asia-Pacific region.