Asia-Pacific stocks mixed as global markets await U.S. tariff rollout

Seeking Alpha News (Wed, 02-Apr 2:12 AM)

Asia-Pacific markets mixed as caution prevailed ahead of additional US tariff rollouts later today. The White House confirmed that reciprocal tariffs on nations imposing duties on US goods would take effect immediately, after Trump unveils them, raising concerns over an escalating global trade war.

Japan (NKY:IND) rose 0.27% to around 35,520, while the broader Topix Index dropped 0.9% to 2,637 on Wednesday. The Japanese yen steady at around 149.8 per dollar on Wednesday, remaining sideways for the week.

Meanwhile, Bank of Japan Governor Kazuo Ueda warned that the new US tariffs could significantly affect global trade and economic growth. Analysts suggest the economic fallout could influence the BoJ's decision on interest rates, with a hike anticipated in Q3 of 2025, likely in July.

China (SHCOMP) rose 0.07% to around 3,360 on Wednesday, building on the previous session’s gains as investors awaited clarity on US President Donald Trump’s upcoming tariffs, and the offshore yuan fell to around 7.27 per dollar on Tuesday, as the looming implementation of President Donald Trump’s reciprocal tariffs overshadowed positive manufacturing PMI data. 

China has launched its inaugural green sovereign bond sale, aiming to raise up to 6 billion yuan ($826 million), while also securing a London listing.

Hong Kong (HSI) fell 0.28% to 23,161 in early deals on Wednesday, reversing a modest gain in the previous session amid losses in most sectors.

India (SENSEX) rose 0.62% to 76,394 in Wednesday morning deals, supported by gains from realty, auto, consumer goods, and private banks. 

Meanwhile, final data from a private survey showed that the manufacturing sector in India grew the most in eight months during March.

Australia (AS51) rose 0.12% to close at 7,935 on Wednesday, building on the previous session’s gains. The Australian dollar strengthened to around $0.63 on Wednesday, marking its second consecutive session of gains.

Elsewhere, fresh data showed that Australian industrial activity contracted further in March, weighed down by uncertainties surrounding US tariffs and domestic politics.

The seasonally adjusted estimate for total dwellings approved in Australia fell by 0.3% month-on-month to 16,606 units in February 2025, less than the expected 1.4% decline.

Australian Prime Minister Anthony Albanese said that his country will "stand up for national interests" in response to President Trump's recent plans to impose retaliatory tariffs on all U.S. trade partners. He confirmed Australia will not impose retaliatory tariffs, noting the U.S. accounts for less than 5% of Australia's goods exports. He emphasized that strengthening trade ties with Asian markets will provide crucial support to Australian businesses.

In the U.S., on Tuesday, all three major indexes ended mixed as investors awaited clarity from President Trump regarding his upcoming tariff policy.

Meanwhile, recent U.S. economic releases showed weak jobs data and a poor manufacturing report. Investors are now focused on Friday's nonfarm payroll report for more insights into the Fed's rate path.

U.S. stock futures held steady on Wednesday as investors awaited the implementation of President Donald Trump’s reciprocal and other tariffs: Dow -0.13%; S&P 500 -0.16%; Nasdaq -0.18%.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

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