Asian stock markets showed mixed results on Wednesday as investors awaited an announcement from U.S. President Donald Trump regarding new tariffs, a move he has dubbed “Liberation Day.”
Japan’s benchmark Nikkei 225 rose 0.3% to 35,718.61, while Hong Kong’s Hang Seng Index dipped 0.1% to 23,176.47. China’s Shanghai Composite inched down by less than 0.1% to 3,346.66. Australia’s S&P/ASX 200 added 0.1% to 7,934.50, whereas South Korea’s Kospi slid 0.7% to 2,504.86.
“Amid the uncertainty on tariff details, risk sentiments were broadly fragile,” noted Tan Jing Yi of Mizuho Bank in a market commentary.
Wall Street Gains Amid Market Volatility
On Wall Street, the S&P 500 climbed 0.4% to 5,633.07, reversing an early 1% decline. The Dow Jones Industrial Average saw a marginal loss of less than 0.1%, closing at 41,989.96, while the Nasdaq Composite gained 0.9% to settle at 17,449.89.
Investors remain jittery as they anticipate Trump’s decision on tariffs and its potential impact on inflation and economic growth. Market swings have been particularly sharp, shifting not just daily but even hourly.
Bond Yields Decline Amid Economic Concerns
In the bond market, Treasury yields dropped following a report showing U.S. manufacturing activity contracted in March, breaking a two-month expansion streak. Another report indicated slightly fewer job openings than economists had predicted for February.
The yield on the 10-year Treasury fell to 4.16% from 4.23% on Monday, continuing its decline from approximately 4.80% in January, signaling growing concerns about a potential economic slowdown in the U.S.
Impact of Tariffs on Businesses and Economy
Companies are already experiencing effects from Trump’s trade policies even before the new tariffs are formally announced. The president has indicated that the tariffs, set to be revealed Wednesday, aim to reduce U.S. dependence on foreign goods and stimulate domestic manufacturing.
Although the U.S. economy continues to grow and the job market remains solid, uncertainty surrounding the trade policy rollout could cause businesses and consumers to curb spending, potentially hampering economic momentum.
Gold Prices Surge to Record Highs
The uncertainty in financial markets has driven gold prices to record highs, briefly surpassing $3,175 per ounce on Tuesday. This marks a sharp rise from levels below $2,700 at the beginning of the year.
Stock Movements: Tesla, PVH, Newsmax, and Johnson & Johnson
Tesla’s stock surged 3.6% ahead of its first-quarter vehicle delivery report. However, concerns over potential consumer backlash and protests against CEO Elon Musk’s involvement in government budget cuts have kept Tesla’s shares down by about one-third for the year.
PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, soared 18.2% after reporting stronger-than-expected quarterly profits and announcing a $500 million share buyback program.
Newsmax continued its meteoric rise, jumping 179% following a staggering 735% surge on Monday, its first day of public trading.
Conversely, Johnson & Johnson dropped 7.6% after a U.S. bankruptcy court judge rejected its settlement plan regarding claims linked to talc-based baby powder. This marks the third time the company’s attempt to resolve the settlement through bankruptcy has been dismissed by the courts.
Oil and Currency Markets
In early Wednesday trading, U.S. benchmark crude oil edged down by 8 cents to $71.12 per barrel, while Brent crude, the international standard, fell 9 cents to $74.40 per barrel.
In currency trading, the U.S. dollar strengthened against the Japanese yen, rising to 149.83 yen from 149.62 yen. The euro inched up to $1.0794 from $1.0791.
As markets remain on edge, investors will be closely monitoring Trump’s tariff announcement and its potential economic ramifications.
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