Global stock markets showed mixed results Friday, with most Asian shares falling while Tokyo’s benchmark surged over 2% after Japanese officials resolved issues related to U.S. tariffs on exports.
In early European trading, Germany’s DAX dropped 0.3% to 24,131.01. France’s CAC 40 rose 0.3% to 7,730.40, while Britain’s FTSE 100 slipped less than 0.1% to 9,094.65.
Futures for the S&P 500 were up 0.3%, and Dow Jones futures gained 0.1%.
New U.S. tariffs on Japanese goods that took effect Thursday did not initially match the agreed 15% level, but Japan’s chief trade negotiator said the U.S. agreed to correct the discrepancy.
Following the news, Tokyo’s Nikkei 225 climbed 2.2%, later settling at a 1.9% gain at 41,820.48. Shares of Toyota Motor rose 3.5%, and Honda Motor gained 4%, with automakers among the most affected by U.S. export tariffs.
Elsewhere in Asia, most markets declined after Wall Street losses. Hong Kong’s Hang Seng dropped 0.9% to 24,858.82, Shanghai Composite lost 0.1% to 3,635.13, South Korea’s Kospi fell 0.6% to 3,210.01, and Australia’s S&P/ASX 200 declined 0.3% to 8,807.10. Taiwan’s Taiex increased 0.1%, while India’s Sensex fell 0.8%.
Stephen Innes of SPI Asset Management commented, “Markets will punish certainty. Momentum can shift quickly, with gains one day turning into losses the next.”
On Thursday, the S&P 500 dipped 0.1%, Dow industrials dropped 0.5%, while the Nasdaq rose 0.3% to a record, boosted by strong performances from Apple and semiconductor firms.
Wall Street Looks Set for Small Gains as Trump’s Tariffs Start
Intel shares fell 3.1% after President Donald Trump called for the resignation of its CEO, citing conflicts of interest without providing evidence. Meanwhile, Apple shares jumped 3.2% following CEO Tim Cook’s announcement at the White House of a $100 billion investment increase in U.S. manufacturing over four years.
Semiconductor companies with large U.S. operations surged after Trump announced 100% tariffs on imported chips but exempted companies with substantial domestic investments. Shares of Advanced Micro Devices rose 5.7%, and Nvidia gained 0.8%.
Concerns over Trump’s tariffs impacting the economy grew after weaker-than-expected U.S. jobs data last week. However, optimism about potential Federal Reserve interest rate cuts and strong earnings from major U.S. firms helped ease worries.
Lower interest rates could stimulate the economy and boost asset prices but also risk higher inflation amid rising tariffs. The Bank of England cut its main rate Thursday to support the slowing U.K. economy.
In commodities, U.S. crude oil rose 16 cents to $64.04 per barrel, while Brent crude increased 19 cents to $66.61 per barrel. The U.S. dollar strengthened to 147.66 Japanese yen from 147.13 yen, and the euro fell slightly to $1.1639 from $1.1667.