Stocks in Asia concluded Tuesday's trading with mixed results following U.S. President Donald Trump's declaration of plans to impose a 25 percent tariff on goods from Canada and Mexico. Additionally, Trump hinted that the potential tariffs on China might be influenced by negotiations concerning the ownership of TikTok.
The U.S. dollar weakened while gold surged to a ten-week high. This movement came after Trump opted not to impose broad trade tariffs on his first day in office. He also declared a national energy emergency, aiming to address the inflation crisis.
In Asia, oil prices showed a mixed performance after Trump's announcement of increasing oil and gas production in the U.S. as part of an effort to reduce consumer costs.
China's Shanghai Composite Index closed slightly lower at 3,242.62 following a volatile trading session. Meanwhile, Hong Kong's Hang Seng Index rose by 0.91 percent to 20,106.55, with property developers becoming increasingly prominent. This shift came after Bloomberg reported governmental measures to stabilize China Vanke Co.
Japanese markets managed to post slight gains, spurred by expectations of a potential increase in the Bank of Japan’s key short-term interest rate after its upcoming two-day policy session. The Nikkei average moved up by 0.32 percent to 39,027.98, while the more comprehensive Topix index closed slightly higher at 2,713.50.
In Seoul, equities showed minimal change. The Kospi average ended slightly lower at 2,518.03, following Trump's comments about tackling unfair global trade practices. Underperformance was noted in battery, chemical, and refinery sectors, with SK Innovation, LG Chem, and LG Energy Solution declining by 4-5 percent.
Australia’s markets experienced significant gains, buoyed by bank and mining stocks. The S&P/ASX 200 increased by 0.66 percent to 8,402.40, and the All Ordinaries Index rose by 0.68 percent to 8,652.70. Shares of BHP went up approximately 1 percent after reporting increased production in the second quarter. Wesfarmers saw a rise of 1.6 percent after unveiling plans to shutter its online marketplace, Catch, by the fourth quarter of the 2025 financial year.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index fell by 0.27 percent to 13,052.90.
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