Gold bars to be exempt from tariffs, White House clarifies
Investing.com-- Most Asian markets were a mixed bag on Monday after U.S. President Donald Trump threatened and then backtracked on increased European trade tariffs over the weekend, while Japanese shares extended a run of recent gains.
But regional technology stocks, especially those supplying to Apple Inc (NASDAQ:AAPL), fell after Trump also threatened to impose a 25% tariff on all iPhone and other smartphone imports.
Broader Asian markets tracked weakness in Wall Street on Friday after Trump threatened to impose 50% tariffs against Europe. But he then agreed to postpone the tariffs to early-July on Sunday.
US stock index futures rose sharply in Asian trade on Trump’s tariff postponement, with S&P 500 Futures surging 0.9%. U.S. markets will be closed on Monday.
Japanese stocks extend gains; Nippon Steel leads on Trump support
Japan’s Nikkei 225 and TOPIX indexes were the outperformers in Asian trade on Monday, rising 0.6% and 0.5%, respectively. Both indexes extended gains into a third consecutive session, amid signs of continued trade dialogue between Tokyo and Washington.
Reports said Japanese ministers will arrive in Washington in early-June for a fourth round of trade talks, although Japan has shown little signs of shifting from its position that the U.S. remove all tariffs on the country.
Nippon Steel Corp (TYO:5401) was the top performer on the Nikkei, rising nearly 4% after Trump on Friday expressed some support for the company’s long-delayed, $14.9 billion buyout of U.S. Steel (NYSE:X).
Trump was referring to a “partnership” between the two companies, leaving it unclear whether the deal will proceed as a full takeover.
But Trump’s comments marked a reversal from his prior opposition to Nippon Steel investing in the U.S. steel industry, which he has viewed as a national security interest.
Apple suppliers fall on Trump tariff threat
Shares of Asian firms who supply Apple Inc (NASDAQ:AAPL) fell after Trump threatened to impose a 25% tariff on all imported iPhones, which he has repeatedly demanded be manufactured in the United States.
A bulk of Apple’s suppliers are based in China, with audio equipment supplier AAC Technologies (OTC:AACAY) Holdings Inc (HK:2018) down 2% in Hong Kong trade, while mainland-listed Luxshare Precision Industry Co Ltd (SZ:002475) and Goertek Inc (SZ:002241) lost more than 1% each.
Smartphone giant Samsung Electronics Co Ltd (KS:005930), which Trump also threatened to slap with tariffs, fell 0.3%, lagging a 1% increase in the broader South Korean KOSPI benchmark. Memory chip giant SK Hynix Inc (KS:000660) lost 0.2%, while Taiwan’s TSMC (TW:2330) shed 0.2%.
Broader Asian stocks were a mixed bag. Hong Kong’s Hang Seng index fell 0.2%, with electric vehicle major BYD Co (HK:1211) among the biggest drags on the index, as it slid over 5% amid heavy profit-taking from a rally to record highs last week.
The mainland Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.1% and rose 0.3%, respectively. Focus was also on more potential trade dialogue between Beijing and Washington, after the two sides agreed to a deescalation earlier in May.
Australia’s ASX 200 fell 0.1%, while Singapore’s Straits Times index fell 0.1%.
Gift Nifty 50 Futures rose 0.4% in morning trade, pointing to a positive open for the Nifty 50 index.