Asian Stocks Retreat as Trump Threatens New Tariff…

From Financial Modeling Prep: 2025-02-19 06:00:36

Asian markets faced pressure due to Trump’s tariff threats, but South Korean tech stocks surged. Chinese markets rallied on AI optimism. Japan’s Nikkei fell 0.4%, Hong Kong’s Hang Seng dropped 0.7%, while South Korea’s KOSPI hit a five-month high. U.S. stock futures held firm amid the tariff concerns.

Trump proposed 25% tariffs on autos by April and on pharmaceuticals and semiconductors. Markets reacted cautiously but not in panic mode, with some seeing the threats as negotiation tactics. U.S. stock futures remained steady, inching towards a record high.

Chinese stocks saw gains driven by AI and tech sectors, supported by government backing. Investors remained optimistic despite Trump’s threats. China’s focus on technology self-sufficiency continued to boost local markets. AI-related investments played a crucial role in propping up Chinese stocks.

Investors are watching the Federal Reserve’s comments on inflation and rate trajectory, along with PMI data for global economic insights. Despite trade war concerns, markets showed resilience. China’s strength in AI and government-backed sectors, along with steady U.S. stock futures, indicated a measured response to tariffs.



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