Asian markets mostly declined on Thursday, even as Wall Street recovered following a positive update on U.S. consumer prices.
U.S. futures edged lower, while oil prices remained relatively stable.
Investor focus remained on trade tensions, particularly in China, where markets retreated as traders awaited further developments in former President Donald Trump’s trade policies. Hong Kong’s Hang Seng index dropped 0.7% to 23,426.80, while the Shanghai Composite index fell 0.4% to 3,357.02.
Japan’s Nikkei 225, however, bucked the trend, rising 0.5% to 37,014.82.
South Korea’s Kospi dipped 0.1% to 2,573.05, while Australia’s S&P/ASX 200 lost 0.4% to 7,756.10. Taiwan’s Taiex also fell 0.4%, and Thailand’s SET slipped 0.1%. India’s Sensex managed a modest 0.1% gain.
Wall Street’s Mixed Performance
On Wednesday, the S&P 500 climbed 0.5% to 5,599.30 after fluctuating between gains and losses throughout the session. The index had briefly fallen more than 10% below its record high set last month.
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The Dow Jones Industrial Average saw similar volatility, ultimately closing down 0.2% at 41,350.93, while the Nasdaq composite rose 1.2% to 17,648.45.
A new U.S. inflation report showed consumer prices increased at a slower pace than expected last month, offering some relief to investors.
AI Stocks Rebound
Stocks tied to artificial intelligence helped lead the market’s recovery. Nvidia surged 6.4%, trimming its losses for the year to 13.8%. Super Micro Computer, a server manufacturer, gained 4%, while GE Vernova, which supports AI data centers, advanced 5.1%.
Tesla also rebounded, rising 7.6%—its first consecutive daily gains in nearly a month—after seeing its stock price more than halve since mid-December.
Trade War Fallout
Despite the broader rebound, more stocks in the S&P 500 fell than rose. Companies exposed to trade tensions suffered sharp losses.
Brown-Forman, the maker of Jack Daniel’s whiskey, dropped 5.1%, while Harley-Davidson tumbled 5.7%. Both companies face European Union tariffs in retaliation for Trump’s 25% duties on steel and aluminum, which took effect earlier in the day.
Canada also responded with tariffs on U.S. goods, including tools and sports equipment.
“Tariffs are essentially taxes,” said European Union President Ursula von der Leyen. “They hurt businesses and consumers alike.”
Asian markets are mixed after Wall Street edges back from its record
The uncertainty surrounding Trump’s trade policies continues to weigh on investor sentiment. While some believe he may implement milder tariffs, the constant shifts in trade policy have already affected confidence among U.S. consumers and businesses. This uncertainty could lead to reduced spending, slowing economic growth.
For instance, on Tuesday, Trump initially announced he would double tariffs on Canadian steel and aluminum but later reversed course after a Canadian province agreed to drop a retaliatory measure.
Business Reactions
Some U.S. companies are already seeing shifts in consumer behavior.
Delta Air Lines fell 3%, extending a 7.3% decline from the previous day after the airline reported weakening demand for last-minute bookings.
Meanwhile, Casey’s General Stores, a convenience store chain based in Iowa, provided a bright spot. Its stock jumped 6.2% after posting stronger-than-expected earnings and revenue, driven by solid sales of hot sandwiches and fuel. The company also reaffirmed its revenue outlook for the year.
Inflation & The Fed
The latest inflation report arrives as concerns grow that Trump’s tariffs could drive prices higher by increasing costs for importers, which may be passed on to consumers.
The Federal Reserve had been cutting interest rates last year to support the economy but has paused this year, partly due to persistent inflation worries. The latest data may influence the central bank’s next moves.
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Oil & Currency Markets
In early Thursday trading, U.S. benchmark crude dipped 11 cents to $67.57 per barrel, while Brent crude, the global benchmark, slipped 5 cents to $70.90 per barrel.
In currency markets, the U.S. dollar weakened to 147.88 Japanese yen from 148.25 yen, while the euro edged up slightly to $1.0889 from $1.0887.
Source: With input from agency