BANGKOK (AP) – Asian shares and United States (US) futures were mostly higher yesterday following a rocky session on Wall Street after Canada, Mexico and China were hit by steep US tariffs that took effect on Tuesday.
Comments by US President Donald Trump in a speech to Congress and the nation appeared to have scant impact on world markets. The future for the S&P 500 was up 0.5 per cent, while that for the Dow Jones Industrial Average gained 0.4 per cent.
China announced it intends to keep its economy growing at around a five-per-cent annual pace in 2025, in line with last year’s target, as it opened the annual session of its largely ceremonial legislature. Premier Li Qiang also promised more government spending and other measures to support growth.
Hong Kong’s Hang Seng index jumped 2.6 per cent to 23,548.86, while the Shanghai Composite index climbed 0.6 per cent to 3,342.36.
Tokyo’s Nikkei 225 index edged 0.2 per cent higher to 37,418.24. In South Korea, the Kospi gained 1.2 per cent to 2,558.13, while Australia’s S&P/ASX 200 shed 1.2 per cent to 8,141.10.
On Tuesday, US stocks racked up more losses on Wall Street as the trade war between the US and its key trading partners escalated.
The Trump administration imposed 25 per cent tariffs on imports from Canada and Mexico starting Tuesday and doubled tariffs against imports from China by 20 per cent. All three countries announced retaliatory actions, sparking worries about a slowdown in the global economy.
The S&P 500 fell 1.2 per cent to 5,778.15, with more than 80 per cent of the stocks in the benchmark index closing lower. The Dow slid 1.6 per cent to 42,520.99.
The Nasdaq composite slipped 0.4 per cent to 18,285.16. The tech-heavy index briefly reached a 10-per-cent decline from its most recent closing high, which is what the market considers a correction, but gains for Nvidia, Microsoft and other tech heavyweights helped pare those losses.
Financial stocks were among the heaviest weights on the S&P 500 index. JPMorgan Chase fell 4 per cent and Bank of America lost 6.3 per cent.
The market could soon face more twists in the tariff drama. After Tuesday’s closing bell, Commerce Secretary Howard Lutnick told Fox Business News that the US would likely meet Canada and Mexico “in the middle” on tariffs.
