By Asian markets delivered a mixed performance on Wednesday as traders braced for further fallout from U.S. President Donald Trump’s latest tariff salvos, which threaten higher levies on commodities and high-tech goods like copper and semiconductors.
The U.S. dollar held strong, hovering near a two-and-a-half-week high, as investors gravitated toward safe-haven assets amid intensifying trade tension risks. The yen and yuan edged lower as traders reweighted risk exposures across the region.
Copper, now directly in Trump’s tariff crosshairs, briefly touched record highs in overnight trading before stabilizing. Analysts flagged potential volatility in commodity markets, particularly for industrial metals and pharmaceuticals — both of which could face tariffs up to 50% unless bilateral trade terms are renegotiated.
Across the region:
- Japan’s Nikkei 225 rose 0.3% as Tokyo sought to re-engage with Washington through diplomatic backchannels.
- South Korea’s Kospi climbed 0.5%, lifted by cabinet efforts to ease upcoming U.S. tariff risks.
- Mainland China’s CSI 300 moved up 0.3%, while investor sentiment remained cautious after weak consumer inflation data.
- Australia’s ASX 200 fell 0.5%, pulled down by energy and banking shares.
- Hong Kong’s Hang Seng Index declined 0.7% as political uncertainty and currency pressures weighed on performance.
Meanwhile, gold prices dipped to a one-week low, pressured by rising U.S. Treasury yields and the stronger dollar, while oil prices paused after a multi-session rally. Energy traders noted that commodity tariffs could have knock-on effects for global demand forecasts.
Kyle Rodda, a trade strategist at Capital.com, noted that although the U.S. signaled a willingness to negotiate, the blanket nature of the tariff rates—even for ASEAN countries that engaged diplomatically—suggests entrenched worries about regional supply chains tied to China.
The global investment community is now squarely focused on the August 1 deadline, with traders carefully parsing any signals from Washington, Tokyo, or Seoul that might suggest recalibration of tariffs or extensions.