Asia stocks tread water before key Trump tariff announcement

Published 02/04/2025, 04:20
Updated 02/04/2025, 04:24
© Reuters.

Investing.com-- Asian stocks struggled for direction in range-bound trading on Wednesday as investors cautiously awaited key tariff announcements from U.S. President Donald Trump later in the global day.

U.S. stock futures were also muted in early Asia hours. Major U.S. stock indices closed higher on Tuesday with gains in technology shares. 

Trump’s ’Liberation Day’ tariffs approach, markets watchful

Trump is set to impose reciprocal tariffs on a broad range of trading partners, on April 2. This initiative, referred to as "Liberation Day," will be followed by a 25% tariff on auto imports starting April 3.

Trump will unveil the new trade tariffs at 15:00 ET (19:00 GMT), and the measures will be effect immediately after the announcement, White House officials said on Tuesday.

Bessent told lawmakers on Tuesday that President Trump will impose the highest reciprocal tariffs on major trading partners on April 2, leaving the targeted countries to reduce the duties by meeting U.S. demands, according to CNBC.

Market participants worldwide are awaiting specific details about the tariffs.

Given the potential for these tariffs to disrupt global trade dynamics, investors were likely taking a wait-and-see approach, leading to subdued market movement.

Japan’s Nikkei 225 was largely muted on Wednesday, while TOPIX lost 0.6%.

China’s Shanghai Composite edged up 0.2%, while the Shanghai Shenzhen CSI 300 index was largely unchanged. 

Hong Kong’s Hang Seng index gained 0.4%.

Singapore’s Straits Times Index fell 0.4%, while Australia’s S&P/ASX 200 ticked up 0.2%.

Futures for India’s Nifty 50 inched 0.2% higher.

S. Korea shares tick lower amid political instability

South Korea’s KOSPI inched 0.3% lower on Wednesday.

South Korea is facing political turmoil as the country’s Constitutional Court is set to review President Yoon’s impeachment over a controversial martial law order, with a decision on whether to remove or reinstate him expected on April 4.

Political instability often triggers concerns about economic disruption, which can result in cautious trading, capital outflows, and a flight to safer assets.

As South Korea is a major economy in the region, any significant instability could have a ripple effect on neighboring markets, particularly in trade-dependent countries.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.