Asian Markets Slide on Thursday Amid U.S. Tariff Shockwave

Asian stock markets closed mostly lower, rattled by the implementation of U.S. President Donald Trump’s “reciprocal tariffs,” which significantly impacted regional sentiment. 

 

Mainland China’s Shanghai Composite Index closed at 3,342.01 points, down 8.12 points or 0.24%. The market held relatively steady amid tariff pressures, though investors remained cautious about uncertainties in the trade environment.

 

Hong Kong’s Hang Seng Index ended at 22,849.81 points, declining approximately 1.52%. The Hang Seng Tech Index saw a steeper drop of 2.09%, while the Hang Seng China Enterprises Index fell 1.31%. Weakness in technology and shipping stocks weighed on the market, though some property stocks bucked the trend with gains.

 

Japan’s Nikkei 225 Index closed at 34,735 points, tumbling 2.77%. The U.S. imposition of a 24% tariff on Japan, higher than anticipated, sparked concerns over the country’s economic outlook. Japanese bank stocks bore the brunt, with the banking index plunging over 7%—its largest single-day drop since August of the previous year—amid bets that the Bank of Japan might pause rate hikes.

 

South Korea’s KOSPI Index finished at 2,486.70 points, down 0.76%, moderating from earlier losses as the market began to digest the tariff shock.

 

Singapore’s Straits Times Index (STI) was still trading as of 16:59:59 local time, standing at 3,944.82 points, down 9.39 points or 0.24%. The Monetary Authority of Singapore (MAS) stated that foreign exchange and money markets were functioning normally and affirmed its readiness to curb “excessive volatility” in the Singapore dollar, bolstering market confidence.

 

Malaysia’s FTSE Malaysia KLCI ended at 1,518.91 points, down 7.61 points or 0.50%. The U.S.’s 24% tariff on Malaysia heightened market concerns, with most sectors declining, particularly banking and shipping.

 

Overall, Asian markets felt the ripple effects of Trump’s tariff policy, with Southeast Asia emerging as a “hard-hit zone” due to steep tariffs on countries like Vietnam (46%), Thailand (36%), and Indonesia (32%). Fears of an escalating global trade war continued to weigh on investor sentiment, with heightened volatility likely in the days ahead.