Asia-Pacific markets fell on Tuesday as renewed trade war concerns and monetary policy shifts dampened investor sentiment.
Wall Street’s overnight losses, triggered by US President Donald Trump’s tariff policies, fueled risk-off trading, while South Korea’s central bank cut interest rates to 2.75% to support its slowing economy.
Major indices across the region declined, reflecting heightened uncertainty over global trade and economic growth.
Japan’s Nikkei 225 dropped 1.34%, with the Topix down 0.72%.
In South Korea, the Kospi slipped 0.5%, while the Kosdaq lost 0.44%.
Australia’s S&P/ASX 200 fell 0.87%, and Hong Kong’s Hang Seng Index tumbled 1.94%, weighed by a continued pullback in Chinese tech stocks.
The CSI 300, tracking mainland China’s biggest firms, dipped 0.88%.
The Bank of Korea delivered a widely expected 25-basis-point rate cut, lowering its benchmark rate to 2.75% from 3%.
The move comes amid South Korea’s ongoing political instability, following the impeachment proceedings against President Yoon Suk Yeol.
The South Korean won weakened slightly to 1,430.1 per US dollar after the decision.
Overnight, US equities extended last week’s losses as Trump’s tariff announcements continued to weigh on sentiment.
The S&P 500 fell 0.5% to 5,983.25, while the Nasdaq Composite dropped 1.21% to 19,286.92.
The Dow Jones Industrial Average eked out a 33.19-point gain, closing at 43,461.21.
Trump reaffirmed plans to implement tariffs on Canada and Mexico after a one-month delay, raising concerns over global trade disruptions.
Buffett boosts Japanese trading houses
Japanese trading firms saw gains after Warren Buffett reaffirmed Berkshire Hathaway’s commitment to increasing its stakes in the sector.
Mitsubishi jumped 8%, while Itochu climbed 6.76%. Marubeni and Sumitomo gained 7.01% and 6.07%, respectively, with Mitsui edging up 0.75%.
Buffett confirmed that Berkshire’s ownership in these firms would rise beyond its previous 10% cap, fueling a rally in the sector.
Nissan slumps amid merger fallout
Nissan shares plunged as much as 9% before paring losses to 7.72% after failed merger talks with Honda and renewed US tariff threats.
The automaker is one of the most vulnerable to Trump’s proposed tariffs on Mexico, second only to Volkswagen in terms of exposure, according to S&P Global Mobility.
With trade tensions escalating and monetary policies shifting, Asian markets remain under pressure, with investors closely watching for further developments in the U.S.-China trade landscape and South Korea’s political climate.
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