Tuesday 25th February 2025: Asia-Pacific Markets Slide as Trade Tensions and Rate Cuts Weigh on Sentiment

Global Markets:

•  Asian Stock Markets : Nikkei down 1.35%, Shanghai Composite down 0.23%, Hang Seng down 0.74% ASX down 0.68%
• Commodities : Gold at $2953.35 (-0.33%), Silver at $32.65 (0.08%), Brent Oil at $74.7 (0.5%), WTI Oil at $71.8 (0.68%)
• Rates : US 10-year yield at 4.376, UK 10-year yield at 4.5640, Germany 10-year yield at 2.469

News & Data:

• (EUR) Belgian NBB Business Climate -12.3  to -12.9 expected

Markets Update:

Asia-Pacific markets declined on Tuesday after Wall Street’s overnight slump, driven by renewed trade tensions from Trump’s tariff policies. Investors also evaluated the Bank of Korea’s rate decision, which aimed to support a slowing economy. Japan’s Nikkei 225 led regional losses, dropping over 1%, while the Topix slipped 0.14%. However, major Japanese trading houses saw gains after Warren Buffett announced plans to increase Berkshire Hathaway’s stake in these firms.

South Korea’s Kospi fell 0.40%, and the small-cap Kosdaq declined 0.23%. The Bank of Korea cut interest rates from 3% to 2.75% in an effort to stimulate economic growth, weakening the Korean won slightly to 1,430.1 per dollar. Meanwhile, political uncertainty loomed as President Yoon Suk Yeol faced impeachment proceedings following his brief imposition of martial law in December.

China’s CSI 300 fell 0.40%, while Hong Kong’s Hang Seng Index dropped 0.62% amid escalating trade tensions with the U.S. The Hang Seng Tech Index, however, managed to recover earlier losses and traded flat. In Australia, the S&P/ASX 200 declined 0.80%, reflecting broader market weakness across the region.

In the U.S., markets struggled to rebound from last Friday’s sell-off. The S&P 500 lost 0.5%, closing at 5,983.25, while the Nasdaq Composite dropped 1.21% to 19,286.92. The Dow Jones Industrial Average edged up 33.19 points (0.08%) to 43,461.21. Sentiment remained fragile as Trump confirmed that tariffs on Canada and Mexico would take effect after a one-month delay, heightening trade war concerns.

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The post Tuesday 25th February 2025: Asia-Pacific Markets Slide as Trade Tensions and Rate Cuts Weigh on Sentiment first appeared on IC Markets | Official Blog.