Asia-Pacific markets were mixed on Wednesday amid uncertainty over U.S. President Donald Trump’s tariff plans and fears of a recession in the world’s largest economy. The White House confirmed that 25% tariffs on steel and aluminum would take effect on imports from Canada and other nations. Japan’s benchmark index ended the day flat at 36,819.09, while the broader Topix index gained 0.91% to close at 2,694.91.
Shares in automaker Nissan increased 0.61% following an announcement that CEO Makoto Uchida would be stepping down on April 1, to be replaced by Ivan Espinosa, the company’s current chief planning officer. Discussions for a potential merger with Honda were terminated, but Honda reportedly intends to continue its initiatives after Uchida’s departure. Shares in Honda fell 0.14%.
Japan’s annual wholesale inflation hit 4% in February, down from a previous high but still above the country’s 2% inflation target, raising bets that the Bank of Japan will hike interest rates. Investment bank Nomura expects the central bank to hike rates by “25 basis points apiece in July 2025 and January 2026.”
South Korea’s index closed 1.47% higher at 2,574.82, with the small-cap Kosdaq advancing 1.11% to end at 729.49. Hong Kong’s market fell 1.36%, and mainland China’s CSI 300 lost 0.36% to close at 3,927.23.
In Hong Kong, tech player Robosense was among the top movers, with shares rising as much as 18.28%.
Markets roiled by tariff concerns
Jewelry chain shares also saw strong gains, advancing as much as 7.15%.
In Australia, the S&P/ASX 200 fell 1.32% to end the day at 7,786.20. Meanwhile, India’s benchmark Nifty 50 fell 0.55%, while the BSE Sensex was down 0.34% as of 1:15 p.m. local time. Economists expect India’s inflation rate for February to slow to 3.98% from 5.68% in January.
In the United States, stocks slid amid uncertainty over the new tariffs proposed by Trump. The Dow Jones Industrial Average lost 478.23 points, or 1.14%, to close at 41,433.48. The S&P 500 and Nasdaq Composite also faced declines.
Tim Murray, capital markets strategist at T. Rowe Price, expects “uncertainty to persist over the near-term as the administration continues to take aggressive policy actions.” Murray believes that while this may weigh on growth and market sentiment, yields might decline in the near-term, offering support. Looking ahead, he anticipates central banks will step in to stabilize growth if conditions deteriorate further.
