Tuesday 4th March 2025: Asian Markets Tumble as U.S. Confirms Tariffs on Mexico and Canada

Global Markets:

•  Asian Stock Markets : Nikkei down 1.47%, Shanghai Composite up 0.13%, Hang Seng down 0.21% ASX down 0.58%
• Commodities : Gold at $2899.35 (-0.19%), Silver at $31.25 (0.18%), Brent Oil at $71.37 (-0.85%), WTI Oil at $67.88 (-0.48%)
• Rates : US 10-year yield at 4.153, UK 10-year yield at 4.5595, Germany 10-year yield at 2.4910

News & Data:

• (USD) ISM Manufacturing PMI 50.3  to 50.6 expected
• (USD) ISM Manufacturing Prices 62.4  to 56.2 expected

Markets Update:

Japanese stocks led declines in Asia-Pacific markets, falling nearly 2% after U.S. President Donald Trump confirmed that tariffs on Mexico and Canada would proceed as planned. The Nikkei 225 dropped 1.71%, while the Topix index lost 1.03%. Japan’s employment rate for January stood at 2.5%, slightly above the estimated 2.4%.

In South Korea, the Kospi index remained flat in choppy trade, while the Kosdaq fell 0.92%. The country’s retail sales declined 0.6% in January after a revised 0.2% increase in December. Hong Kong’s Hang Seng index dipped 0.18%, while China’s CSI 300 fell 0.17% ahead of the country’s “Two Sessions” parliamentary meeting.

Australia’s S&P/ASX 200 closed 0.58% lower at 8,198.10. The country’s retail sales grew 0.3% in January, aligning with forecasts, after a 0.1% decline in December. Meanwhile, India’s Nifty 50 dropped 0.25%, and the BSE Sensex lost 0.21%, reflecting broader market weakness in the region.

In the U.S., all three major indexes fell as Trump reaffirmed that 25% tariffs on Mexican and Canadian imports would take effect Tuesday. The S&P 500 dropped 1.76% to 5,849.72, marking its worst day since December. The Dow Jones Industrial Average declined 649.67 points (1.48%) to 43,191.24, while the Nasdaq Composite slid 2.64% to 18,350.19, weighed down by an 8% decline in Nvidia stock.

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