Asia-Pacific markets mixed as Trump administration prepares to roll out fresh tariffs

India’s 10-year benchmark government bond yield slid to its lowest level since January 2022, data from LSEG showed.

“Foreign funds are getting confident of rupee stability as well as India’s macro-economic stability,” said Anuj Tagra, vice president and portfolio manager of Franklin Templeton’s India Fixed Income team.

“Market expectations of RBI’s push to focus on growth through rate cuts and infusion of liquidity into the system has brought back attractiveness of debt as an asset class with the foreign investors.”

—Lee Ying Shan

Brent crude prices have climbed back to around $74 amid growing geopolitical concerns tied to potential U.S. actions that may impact oil exports from Venezuela and Iran, noted Citi.

This marks a reversal of the sell-off in early March which notched oil prices down to $69, largely thanks to OPEC+’s announcement to begin easing production cuts in April and rising fears of U.S. tariffs, Citi’s analysts wrote.

However, the rally will “struggle to hold,” as a result of macroeconomic uncertainties, Fitch Solutions’ research unit BMI said.

“While U.S. President Donald Trump’s approach to tariffs has been somewhat erratic, effective tariff rates are rising globally, raising concerns for the health of the global economy and, consequently, the demand for oil,” said BMI analysts.

Brent futures last inched up 0.04% to $74.51 a barrel, while U.S. West Texas Intermediate rose $0.04 to $71.23 a barrel. 

—Lee Ying Shan

Bank of Japan Governor Kazuo Ueda has reportedly warned that U.S. tariffs will have a huge impact on global trade.

Speaking to Japan’s parliament, his comments come as U.S. President Donald Trump prepares to roll out reciprocal tariffs on April 2 stateside, as well as auto tariffs on April 3.

In Asia, Japanese automakers are expected to see the most pain from the auto tariffs, with experts telling CNBC Toyota could be the worst hit.

— Lim Hui Jie, Reuters

Thailand’s commerce ministry said the country’s semiconductor exports could face 25% tariffs from the U.S., and that potential U.S. tariffs could cost the country between $7 billion and $8 billion.

The Thai baht lost 0.2% to trade at 34.22 against the dollar, marking the weakest since February 28, data from LSEG showed.

—Lee Ying Shan

Japan’s Nikkei 225 slipped 0.47% to its lowest since September, data from FactSet showed, as investors brace for U.S. President Donald Trump’s latest round of tariffs.

Index heavyweight SoftBank slipped 2.22%, while telecom company Kddi, which has the fifth largest weightage in the index, fell 1.68%. Sumitomo Pharma led losses, down 4.4%.

Japan’s Topix declined 1.08%.

— Lee Ying Shan

Shares of Japan and Korean automakers declined after rebounding on Tuesday.

Nissan, which has three plants in Mexico, declined 2.43%. Toyota and Honda fell 0.74% and 0.74% respectively. Mazda Motor lost over 0.51%.

South Korea’s Kia Motors, which has a manufacturing plant in Mexico, slipped 0.75%.

—Lee Ying Shan

South Korea’s Financial Supervisory Service Governor Lee Bok-hyun wants to step down, local media outlets reported.

“When I told the Chairman of the Financial Services Commission, the Deputy Prime Minister for Economic Affairs and the Governor of the Bank of Korea also contacted me and told me that the market situation is very difficult and that I should not act rashly,” Lee reportedly said on a news show.

South Korea’s inflation climbed 2.1% year-on-year in March, higher than the 2% seen in February.

This was also higher than the 2% rise expected by economists polled by Reuters.

Core inflation in the country — which strips out prices of food and energy — increased 1.9% compared to the same period last year.

— Lim Hui Jie

The S&P 500 closed higher on Tuesday in yet another volatile session that saw the broad market index seesaw between gains and losses, as investors anxiously await the rollout of President Donald Trump’s tariffs.

The S&P 500 added 0.38% to finish the session at 5,633.07, while the Nasdaq Composite climbed 0.87% to 17,449.89. The Dow Jones Industrial Average slipped 11.80 points, or 0.03%, to close at 41,989.96.

— Brian Evans

Christopher Harvey, head of equity strategy at Wells Fargo Securities, said he remains constructive on the long-term outlook for stocks, but warned investors not to underestimate the potential risks around the April 2nd tariff announcement.

“We remain constructive on equities longer term given: (1) potential monetary stimulus (i.e., 75+ bps of 2025 Fed rate cuts) starting by mid-year; (2) anticipated tax bill movement (and possible enactment) this summer; and (3) several uber-caps already look oversold (TSLA, AVGO, NVDA),” Harvey wrote Tuesday.

“However, the risks are not small and recession is possible. We are worried most about the potential unintended consequences of aggressive tariff moves,” Harvey said.

— Sarah Min