Asian shares took a hit on Thursday, even after a positive update on U.S. consumer prices helped Wall Street. While U.S. futures dipped, oil prices remained stable.
Chinese markets were affected as investors anticipate the next moves in President Donald Trump’s trade war. Hong Kong’s Hang Seng index fell 0.7% to 23,426.80, and the Shanghai Composite lost 0.4% to 3,357.02. Japan’s Nikkei 225, on the other hand, saw a slight gain of 0.5%, reaching 37,014.82.
Meanwhile, South Korea’s Kospi slipped 0.1% to 2,573.05, and Australia’s S&P/ASX 200 decreased by 0.4% to 7,756.10. Taiwan’s Taiex saw a similar decline of 0.4%, while India’s Sensex rose slightly by 0.1%. Thailand’s SET index was down 0.1%.
On the U.S. front, the S&P 500 climbed 0.5% after showing wild fluctuations, managing to bounce back from a temporary drop that put it 10% below its recent all-time high. The Dow Jones Industrial Average fell 0.2% to 41,350.93, and the Nasdaq composite increased by 1.2% to 17,648.45.
The latest inflation report indicated that consumer prices in the U.S. rose more slowly than economists had expected. This news supported stocks in the artificial intelligence sector, which had been struggling but saw recovery. For instance, Nvidia bounced back with a 6.4% rise, while other companies like Super Micro Computer and GE Vernova also experienced gains.
However, many other stocks faced losses, particularly those vulnerable to Trump’s ongoing trade war. Companies such as Brown-Forman, which produces Jack Daniel’s whiskey, and Harley-Davidson, saw significant declines. U.S.-made products like bourbon and motorcycles are being targeted by tariffs from the European Union, prompting more concerns.
Trade tensions escalated when Trump implemented tariffs on steel and aluminum and faced swift retaliation from allies like Canada and the European Union. Ursula von der Leyen, the President of the EU, expressed deep concern over these increasing tariffs, stating that they are detrimental to both businesses and consumers.
This back-and-forth on tariffs has raised big questions about the economic impact, with analysts noting that such chaos can erode consumer confidence and spending. A recent survey indicated that many businesses are already observing changes in customer behavior. For instance, Delta Air Lines reported a steep drop in demand for flights, following a significant decline in its stock price.
Conversely, Casey’s General Stores, a chain of convenience stores, reported better-than-expected profits and saw its stock rise 6.2%. The company attributed its success to hot sandwich sales and steady fuel demand.
Current anxieties surrounding tariffs could push prices up further, which might lead the Federal Reserve to reconsider its interest rate strategy. The central bank had been cutting rates to stimulate the economy but paused this year amid fears of rising inflation.
In the commodities market, U.S. benchmark crude oil lost 11 cents to $67.57 per barrel, while Brent crude dropped by 5 cents to $70.90. The dollar weakened against the yen, moving to 147.88 from 148.25, while the euro gained slightly against the dollar.
For ongoing details on the impact of international trade policies, the U.S. Bureau of Economic Analysis provides regular updates on consumer trends and economic indicators. You can learn more here.
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