Asia-Pacific stock markets began Thursday’s session with a mixed performance, as investors navigated a complex landscape of new US tariff announcements from President Donald Trump and a key interest rate decision from the Bank of Korea.
While some regional bourses found positive footing, Japanese stocks slipped, and Indian benchmarks like the Sensex are poised for a sluggish start.
The primary driver of market caution was a fresh set of tariff pronouncements from the US President.
In his latest move, President Trump announced he would slap a 50% tariff on Brazilian imports, with the new duty set to begin on August 1.
He also confirmed on Wednesday that a previously announced 50% tariff on copper imports will take effect on the same date.
In a post on his Truth Social platform, President Trump explained that the decision on copper tariffs was made after he received a national security assessment.
“I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT,” Trump wrote.
He highlighted the metal’s strategic importance: “Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many. Copper is the second most used material by the Department of Defense.”
These targeted and significant tariffs have injected another layer of uncertainty into global trade dynamics.
A divergent picture across Asian bourses
The reaction to these developments was varied across the region. Japan’s benchmark Nikkei 225 slipped 0.45% at the open, and the broader Topix lost 0.54%.
In contrast, South Korea’s Kospi climbed 0.24%, and the small-cap Kosdaq rose 0.44%. Australia’s S&P/ASX 200 also started the day higher, up 0.51%.
Bank of Korea holds rates steady amid economic weakness
In monetary policy news, South Korea’s central bank, as widely expected, held its policy rate steady at 2.5%, keeping it at an almost three-year low.
The decision comes as South Korea’s economy has shown signs of weakness, contracting by 0.2% quarter-on-quarter in the first three months of this year due to weak construction activity and softening export growth.
On a year-on-year basis, the economy remained flat during that period.
Indian markets brace for muted opening
Indian stock market benchmark indices, the Sensex and Nifty 50, are likely to have a sluggish start on Thursday, tracking the mixed cues from other global markets.
The trends on Gift Nifty also indicated a muted beginning, with Gift Nifty trading around the 25,567 level, a slight premium of just 8.2 points from Nifty futures’ previous close.
This follows a session on Wednesday where the domestic equity market ended lower. A sell-off in IT and oil & gas stocks dragged the indices down, as investors became wary ahead of the upcoming earnings season and amid the mixed trends globally.
The 30-share BSE Sensex had dropped by 176.43 points, or 0.21%, to close at 83,536.08, while the Nifty 50 fell by 46.40 points, or 0.18%, to finish at 25,476.10.
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