Korean auto stocks decline as Trump implements 15% tariff
Korean auto stocks experienced a significant drop on Thursday after President Donald Trump announced a 15% tariff on imports from various countries, specifically affecting vehicles.
Kia saw its shares dip by 5.25%, and Hyundai Motor fell by 3.48% as of 10:53 am local time.
China and Hong Kong markets experience early trading
China and Hong Kong stocks opened lower on Thursday, following a mix of outcomes in other major Asia-Pacific markets.
The Hang Seng index dropped by 0.91%, matching a similar decline in the mainland index, while the CSI 300 remained unchanged.
Samsung Electronics shares rise nearly 2% despite missed profits
Samsung Electronics saw a 1.92% increase in shares on Thursday, reflecting a market value of 4.7 trillion South Korean won ($3.38 billion), even after their second-quarter operating profit fell short of expectations.
The company attributed its struggles to a downturn in the chip sector.
Nissan shares surge nearly 5% following significant operating loss
Nissan Motor’s stock climbed 4.9% on Thursday, recovering from two consecutive days of losses.
Despite reporting an operating loss of 79.1 billion yen ($530 million) for the first fiscal quarter, the company’s shares showed resilience, attributable to factors like declining sales and adverse currency fluctuations tied to U.S. tariffs.
Asia-Pacific markets display mixed results
The Asia-Pacific markets showed varied performance on Thursday.
Japan’s Nikkei 225 index increased by 0.21%, while the broader Topix index grew by 0.28% as of 8:10 am Singapore time.
In Korea, the Kospi index fell by 0.14%, with the Kosdaq remaining stable.
Australia’s S&P/ASX 200 declined by 0.53%.
Opening call for the trading day
Good morning from Singapore.
Investors are closely monitoring the Korean market following President Trump’s announcement of a comprehensive 15% tariff on exports to Japan. The Bank of Japan is expected to maintain a short-term interest rate of 0.5% following its policy meeting.
The futures for the Japanese Nikkei 225 are showing contraction, with prospects looking slightly weaker.
Similarly, the Hong Kong Hang Seng Index futures indicate a potentially lower opening compared to previous close.
Australia’s S&P/ASX 200 is also poised to begin the day on a downward note.
Rise in S&P 500 and Nasdaq 100 futures
S&P 500 closes lower
The S&P 500 faced a decline on Wednesday, erasing early-session gains after Fed Chair Jerome Powell dampened expectations for rate cuts in September.
The index decreased by 0.12% to finish at 6,362.90, while the NASDAQ Composite managed a slight gain of 0.15% to end at 21,129.67. The Dow Jones industrial average fell by 0.38%, closing at 44,461.28.
Impact of tariffs on inflation remains uncertain, says Powell
Federal Reserve Chair Jerome Powell stated that the Fed can maintain stable interest rates as it continues to assess whether tariff policies will lead to inflation increases.
According to Powell, while some products are already reflecting prices influenced by tariffs, the overall impact on economic activity and inflation is still unclear.
He described a scenario where the immediate effects of tariffs might be temporary, but there’s a possibility for more lasting changes in inflation.
Powell emphasized the importance of stabilizing long-term inflation expectations, suggesting that their current policy is sufficient to mitigate inflation risks.
Split Fed keeps rates unchanged
The Federal Reserve decided to keep its monetary policy steady, as anticipated. However, dissenting opinions arose from two officials who advocated for a 0.25 percentage point cut.
This marked the most dissent in policy decisions since 1993.
