Asian shares were mostly falling Wednesday as investors braced for President Donald Trump’s latest tariff announcement later in the day. Japan’s Nikkei 225 recouped early losses and was down less than 0.1% in morning trading, while Australia’s S&P/ASX 200 added 0.2%. South Korea’s Kospi dipped 0.4%, Hong Kong’s Hang Seng dropped 0.9%, and the Shanghai Composite inched down less than 0.1%.
“Amid the uncertainty on tariffs details, risk sentiments were broadly fragile,” said Tan Jing Yi at Mizuho Bank. On Wall Street, the S&P 500 rose 0.4% after recovering from an early 1% drop. The Dow Jones Industrial Average edged down less than 0.1%, while the Nasdaq composite added 0.9%.
Treasury yields sank after reports indicated U.S. manufacturing activity contracted last month and employers advertised slightly fewer job openings than expected in February.
Asian markets face tariff uncertainty
The uncertainty surrounding Trump’s trade strategy has caused concern, even if he announces less severe tariffs than feared.
Companies are already feeling the effects of the trade war. One computer and electronic products company told the Institute for Supply Management, “Customers are pulling in orders due to anxiety about continued tariffs and pricing pressures.” A food and beverage manufacturer reported, “Starting to see slower-than-normal sales in Canada, and concerns of Canadians boycotting U.S. products could become a reality.”
The nervousness has driven gold prices to record highs, briefly topping $3,175 per ounce Tuesday. In company news, Tesla surged 3.6% ahead of reporting its quarterly deliveries, while PVH, owner of Calvin Klein and Tommy Hilfiger, jumped 18.2% on strong profits and a stock buyback plan.
Johnson & Johnson dropped 7.6% after a court rejected its attempt to resolve talc litigation through bankruptcy. The S&P 500 rose 21.22 points to 5,633.07, the Dow dipped 11.80 points to 41,989.96, and the Nasdaq gained 150.60 points to 17,449.89. The 10-year Treasury yield fell to 4.16%, reflecting concerns about a potentially slowing U.S. economy.
The U.S. dollar rose slightly against the Japanese yen and euro.
