Asian stocks wavered on Tuesday as investors assessed the latest tariff threats from U.S. President Donald Trump. The dollar perked up, trading near three-week highs against a basket of peers. Hong Kong’s Hang Seng Index dropped more than 2%, finishing 2.35% lower at 23,344.25.
The Hang Seng Tech Index also saw significant declines, falling 3.82% to close at 5,517.52. Mainland China’s Shanghai Composite remained flat at 3,932.30. In India, the benchmark Nifty 50 saw a moderate rise of 0.32%, while the BSE Sensex traded flat as of 1.45 p.m. local time.
Japan’s benchmark Nikkei 225 ended the day 0.46% higher at 37,780.54, with the broader Topix index increasing 0.24% to 2,797.52. South Korea’s Kospi fell 0.62% to 2,615.81, and the small-cap Kosdaq declined 1.24% to 711.26. Meanwhile, Australia’s ASX200 ended the day flat at 7,942.50.
Private equity firm KKR announced plans to acquire 100% of Japanese software developer Fuji Soft. After a bidding war with Bain Capital, KKR confirmed a memorandum of understanding signed on Monday to take full ownership.
Asian markets react to tariff threats
Fuji Soft shares traded marginally higher, up 0.20%. Japan’s 5-year government bond yield rose to 1.165%, the highest since October 2008, with the 10-year bond yield gaining more than 3 basis points to 1.575%. The Bank of Japan, under Governor Kazuo Ueda, stated that interest rates would continue to rise if inflation meets target expectations.
The Indonesian rupiah depreciated 0.45% against the U.S. dollar to 16,625 at 11.36 a.m. Singapore time, reaching its lowest level since June 1998. Other emerging market currencies, including the Thai baht and Malaysian ringgit, also saw declines against the dollar. India’s Nifty 50 benchmark gained 0.47% in early trade, extending its positive streak to seven consecutive sessions.
The index is up 0.24% year-to-date. BYD shares fell over 3% in early trade despite a strong financial performance, with a 73.1% net profit surge and significant fourth-quarter revenue growth. Xiaomi shares plunged over 5% following an upsized $5.5 billion share sale aimed at expanding its electric vehicle manufacturing.
Japan’s Topix briefly hit an eight-month high of 2,818.36, driven by gains in stocks such as inkjet printer manufacturer Roland DG (up 9.11%) and electrical equipment manufacturer Sumitomo Electric (up 4.97%). Shares in South Korea’s Hyundai Motor rose 5.16% after announcing a $21 billion investment in the U.S., which includes a new $5.8 billion steel plant in Louisiana projected to create over 1,400 jobs.
