Asian Markets Close Mixed After Trump Announces Auto Tariffs

Asian stock markets ended mixed on Thursday (27) as automotive shares tumbled following U.S. President Donald Trump's announcement of a new 25% tariff on imported cars, set to take effect next week.

Automakers Hit Hard in Japan and South Korea

Japan’s Nikkei index fell 0.60% in Tokyo, closing at 37,799.97 points, as major automakers took a hit—Mazda Motor plunged 6%, while Subaru dropped 5%. Meanwhile, South Korea’s Kospi slid 1.39% to 2,607.15 points, weighed down by losses from Hyundai Motor (-4.3%) and Kia (-3.5%). Taiwan’s Taiex also declined 1.39%, settling at 21,951.76 points.

Trump’s Trade Move Shakes Markets

Trump's tariff decision is the latest escalation in ongoing global trade tensions. However, in a surprising twist, he also suggested that he might consider easing tariffs on China—on one condition: if Beijing approves the sale of the social media app TikTok. This potential compromise may have provided some support to Chinese and Hong Kong markets today.

China and Hong Kong Show Resilience

In mainland China, the Shanghai Composite inched up 0.15% to 3,373.75 points, while the Shenzhen Composite slipped slightly by 0.07% to 2,044.61 points. Hong Kong’s Hang Seng index managed to climb 0.41%, closing at 23,578.80 points.

Adding to the market sentiment, official data revealed that profits in China’s industrial sector fell by 0.3% in the first two months of the year compared to the same period in 2024. However, this marked a significant improvement from the 3.3% decline recorded last year.

Australian Market Breaks Winning Streak

In Oceania, the Australian stock market ended in the red, snapping a five-session winning streak. The S&P/ASX 200 in Sydney dropped 0.38% to 7,969.00 points.

With global markets reacting sharply to Trump’s latest trade move, investors will be closely watching further developments in the U.S.-China trade relationship and their broader impact on the global economy.