HONG KONG: Asian markets declined on Friday as strong United States economic data and fresh tariff threats from former President Donald Trump weighed on investor sentiment.
Wall Street recorded its third consecutive loss after hitting record highs earlier in the week, setting a negative tone for regional trading.
Traders remain uncertain about the Federal Reserve’s interest rate path despite last week’s cut, with policymakers offering mixed signals on future moves.
Strong second-quarter US economic growth of 3.8% exceeded initial estimates of 3.3%, marking the fastest expansion in nearly two years.
Investors now await Friday’s personal consumption expenditure index and next week’s nonfarm payrolls report for further clues on the economy.
Tokyo, Hong Kong, Shanghai, Seoul, Wellington, Taipei, Mumbai, Bangkok and Manila all retreated during the session.
Sydney, Singapore and Jakarta managed slight gains while the US dollar maintained its strength following the growth figures.
Trump announced new 100% tariffs on branded pharmaceuticals unless companies build manufacturing plants in America.
He also threatened 25% levies on all heavy trucks imported from other countries, citing national security concerns.
Asian pharmaceutical stocks declined sharply, with Shanghai Fosun falling more than 5% and South Korea’s Daewoong dropping over 3%.
Japanese firms Daiichi Sankyo and Astellas Pharma saw significant losses, while Sydney-listed CSL shed nearly 2%.
India’s Sun Pharmaceutical Industries led declines on the Nifty 50 index with a 3% drop, dragging down peers Cipla, Dr Reddy’s Laboratories, Lupin and Biocon.
MUFG analyst Michael Wan suggested India might be spared from the tariffs if they exclude generic drugs.
Traders also monitored Washington negotiations to avoid a government shutdown by next week’s deadline.
National Australia Bank’s Taylor Nugent noted Republicans and Democrats remain divided over spending plans with no clear resolution in sight.
European markets including London, Paris and Frankfurt opened slightly higher despite the Asian declines. – AFP
