Asia-Pacific Markets React to Bank of Korea Rate Decision and New Trump Tariffs: A Mixed Trading Day for Investors

Asia-Pacific Market Wrap-Up

Asia-Pacific markets closed on a mixed note recently.

In Japan, the Nikkei 225 dropped by 0.44%, finishing at 39,646.36. The Topix index also declined by 0.56%, closing at 2,812.34.

On the other hand, South Korea’s Kospi saw an increase of 1.58%, reaching 3,183.23, while the Kosdaq gained 0.93% to close at 797.7.

Australia’s S&P/ASX 200 slipped 0.59%, ending the day at 8,589.2. However, China’s CSI 300 rose by 0.47%, closing at 4,010.02.

Positive Outlook for Vietnam Stocks

JPMorgan has upgraded its stance on Vietnam stocks to “overweight” following a recent trade deal with the U.S. Vietnam has become the first Southeast Asian nation to secure a tariff agreement with the U.S. at a 20% rate. Analysts predict that strong economic growth, approximately 8% GDP growth in Q2 2025, will drive the VN-Index up to 1,500 or even 1,600 by year-end.

As of Thursday, the Vietnam Index traded 0.78% higher at 1,442.29.

Singapore Stocks Soar

Singapore’s Straits Times Index hit a new record, gaining 0.47% to reach 4,077.41 points. This marks the fourth consecutive day of growth for the index, reflecting strong market sentiment and economic stability in the region.

U.S. Tariff on Copper

U.S. President Trump announced a 50% tariff on copper imports effective August 1, 2025. He stated that this measure is rooted in national security concerns, particularly due to copper’s vital role in sectors such as defense and technology.

South Korea’s Steady Policy Rates

The Bank of Korea has decided to keep its policy rate at 2.5%, maintaining this level for nearly three years. The economy faced a slight contraction of 0.2% in early 2023, primarily due to weaker construction activity and sluggish export growth.

Current Market Sentiment

U.S. stock futures were mostly flat, with S&P 500, Nasdaq 100, and Dow Jones futures showing minimal change. On the other hand, the Nasdaq Composite reached an all-time closing high, rising by 0.94% to settle at 20,611.34.

In summary, while the Asia-Pacific markets show mixed performance, specific regions like Vietnam and Singapore are demonstrating promising growth. Meanwhile, U.S. tariffs and domestic economic policies will continue to shape market trends in the coming weeks.

For more insights on global markets, check out CNBC.

Source link

United States,Donald Trump,Breaking News: Markets,Markets,business news