A digital stock board in Tokyo displays Japan's stock prices on Tuesday, March 11, 2025. (Kyodo News via AP)
Asian markets showed a mixed performance on Wednesday as investors reacted to ongoing trade tensions following another turbulent day on Wall Street. U.S. stock futures and oil prices saw an uptick, offering a slight reprieve after steep losses.
The S&P 500 briefly dropped over 10% from its peak last month, rattled by President Donald Trump’s trade policies. His decision to raise tariffs on Canadian steel and aluminum led to swift retaliation from Ontario, which removed a surcharge that had been a point of contention.
In Asia, Japan’s Nikkei 225 edged up 0.2% to 36,880.79, while Hong Kong’s Hang Seng climbed 0.3% to 23,845.37. China’s Shanghai Composite slipped by nearly 0.1% to 3,377.95. Meanwhile, Australia’s S&P/ASX 200 tumbled 1.7% to 7,756.90, and South Korea’s Kospi rose 1.5% to 2,575.39.
On Tuesday, Wall Street saw sharp declines. The S&P 500 fell 0.8%, closing 9.3% below its record high. The Dow Jones Industrial Average dropped 1.1% to 41,433.48, while the Nasdaq composite slipped 0.2% to 17,436.10. Investors are grappling with uncertainty as Trump’s unpredictable tariff policies continue to shake the markets.
“Markets remain volatile due to ongoing concerns over Trump’s tariff moves, with investors unsure about what’s next,” said Tim Waterer, chief market analyst at KCM Trade.
Trump acknowledged that his trade policies could cause some economic disruption but remained firm in his stance. When asked about the potential impact on the economy and stock market, White House press secretary Karoline Leavitt avoided specifics, stating that “the president will look out for both Wall Street and Main Street.”
In a social media post, Trump even suggested, “The only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all tariffs disappear.”
Later in the day, markets recovered slightly after Ontario’s premier announced the removal of an electricity surcharge that had previously angered Trump. In response, Trump hinted that he would likely restore the 25% steel and aluminum tariffs on Canada.
The uncertainty surrounding Trump’s trade measures continues to affect businesses and consumers. Tariffs can lead to higher prices for American consumers and disrupt global trade. Even if their impact is less severe than feared, the market’s constant fluctuations could make businesses hesitant to invest or expand.
Some Big Tech stocks stabilized after recent losses. Tesla climbed 3.8% following Trump’s public endorsement of the company, while Nvidia added 1.7%, easing its losses for the year.
Despite the market turmoil, a report released Tuesday showed that U.S. employers posted 7.7 million job openings at the end of January, indicating resilience in the labour market.
In commodities, U.S. crude oil rose 52 cents to $66.77 per barrel, while Brent Crude gained 51 cents to $70.07 per barrel. Meanwhile, the U.S. dollar strengthened to 148.22 yen from 147.78 yen, while the euro dipped slightly to $1.0902.
