Asia-Pacific stocks began the session on Thursday with mixed results as investors negotiated a complicated landscape of US tariffs announced by President Donald Trump, and an important interest rate announcement from Bank of Korea.
Sensex, the Indian benchmark, is expected to have a slow start. While Japanese shares fell, some other regional bourses were on a positive note.
A new set of tariff announcements from US President was the primary reason for market caution.
Trump’s latest announcement was that he will impose a tariff of 50% on Brazilian imports. The new duties are set to start on August 1.
On Wednesday, he confirmed that the previously announced tariff of 50% on imports of copper will also take effect at this date.
Trump said in a Truth Social post that he made the decision to impose tariffs on copper after receiving a security analysis.
Trump said: “I’m announcing that I will be imposing a 50% tariff on Copper starting August 1, 2025 after receiving an extensive NATIONAL SECURITIES ASSESSMENT.”
The metal is essential for many things, including: Lithium-ion Batteries, Radar Systems, Missile Defense Systems, Hypersonic weapons, which are being built in large numbers. The Department of Defense uses copper as the second-most common material.
The targeted, significant and significant import tariffs added a new layer of uncertainty to global trade dynamics.
A divergent picture across Asian bourses
There were varying reactions to this development across the region. The benchmark Nikkei index in Japan fell 0.45% on the opening day, while the Topix Index lost 0.54%.
South Korea’s Kospi rose by 0.24% and its small-cap Kosdaq increased by 0.44%. Australia’s S&P/ASX 200 opened the day with a 0.51% gain.
Bank of Korea keeps rates the same despite economic weakening
As expected, the central bank of South Korea held steady its policy rate at 2,5%. This is a nearly three-year low.
South Korea has been showing signs of economic weakness. The economy contracted by 0.2% in the first quarter of this year, mainly due to weakening construction and export growth.
The economy was flat on an annual basis during this period.
Indian markets prepare for a muted start
The Indian benchmark indices Sensex (Sensex) and Nifty 50 (Nifty 50), are expected to start the day sluggishly on Thursday. This is due to the mixed signals from the other markets around the world.
Gift Nifty’s trends also showed a muted start, as it traded around 25,567, just 8.2 point higher than the previous Nifty Futures close.
The session ended Wednesday with a lower closing price for the local equity market. The indices were dragged down by a sell-off of oil and gas and IT stocks, amid investor caution ahead of earnings season.
The BSE 30-share Sensex fell by 176.43, or 0.2%, closing at 83.536.08, and the Nifty 50 dropped by 46.40, or 0.1%, finishing at 25,476.10.
This article Asian Markets Open: Nikkei Down; Bank of Korea Holds Rates; Sensex Opens Flat may be updated as new developments unfold.
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