Asian equities closed mostly lower on Friday as US President Donald Trump’s sweeping reciprocal tariffs against more than 90 nations came into force just after midnight, rattling investor sentiment and prompting profit-taking across several regional markets.
Trump, posting on Truth Social, claimed the tariffs would bring “billions of dollars” into the US unless blocked by what he described as a “radical left court.”
He also demanded the immediate resignation of Intel’s new CEO, Lip-Bu Tan, citing “highly conflicted” ties to Chinese companies.
China and Hong Kong stocks weaken on earnings, deflation fears
The Shanghai Composite Index slipped 0.12% to 3,635.13, while the CSI 300 managed a fractional gain of 0.1%.
Hong Kong’s Hang Seng Index fell 0.9% to 24,858.82, snapping a four-day advance as disappointing corporate earnings and persistent concerns over China’s deflationary pressures weighed on sentiment.
The Hang Seng Tech Index dropped 1.6%. Still, the Hang Seng posted a 1.4% weekly gain, supported by speculation that the US Federal Reserve could cut interest rates following softer US labour market data.
Japan outperforms on tariff concessions
Japan’s benchmarks bucked the regional downtrend after the country’s chief trade negotiator announced that the US agreed to scrap “stacking” on universal tariffs and reduce car import levies simultaneously.
Investor sentiment was further boosted by SoftBank Group’s robust quarterly profits and expanding investments in artificial intelligence.
The Nikkei 225 jumped 1.85% to 41,820.48, while the Topix climbed 1.21% to 3,024.21, breaching the key 3,000-point level for the first time.
Automakers Nissan, Mitsubishi Motors, Honda, and Toyota gained between 3% and 4%.
SoftBank shares soared 10.4%, and Sony rose 3.5% after lifting profit forecasts.
Other regional markets
In Seoul, the Kospi fell 0.55% to 3,210.01 as defence stocks slumped on speculation that next week’s planned US–Russia summit could pave the way for an end to the war in Ukraine.
Hyundai Rotem slid 4.9%, Hanwha Aerospace dropped 5.5%, and LIG Nex1 tumbled 14.9%.
Australian equities eased after two record-setting sessions, with investors cautious ahead of the Reserve Bank of Australia’s August 12 policy meeting.
The S&P/ASX 200 slipped 0.28% to 8,807.10, and the All Ordinaries Index fell by the same margin to 9,076.60, with banking and energy stocks leading declines.
Indian equity benchmarks closed lower on August 8, with the Nifty slipping below the 24,400 mark.
The Sensex ended down 765.47 points, or 0.95%, at 79,857.79, while the Nifty fell 232.85 points, or 0.95%, to settle at 24,363.30.
Among the biggest losers on the Nifty were Adani Enterprises, Bharti Airtel, Shriram Finance, IndusInd Bank, and Mahindra & Mahindra.
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