MANILA, Philippines — Asian shares retreated Friday following choppy trading on Wall Street that saw more losses as investors assess President Donald Trump’s order imposing new tariffs on 68 countries and the European Union starting in seven days.
Trump’s order, which pushed back the tariff deadline earlier set on Aug. 1, has injected a new dose of uncertainty in an already uncertain process.
Japan’s Nikkei 225 slid 0.7 % to 40,797.96 while South Korea’s Kospi tumbled 3.5% to 3,132.12.
Hong Kong’s Hang Seng index trimmed earlier losses, shedding 0.8% to 24,584.86, while the Shanghai Composite slipped 0.5% to 3,554.67.
Australia’s S&P ASX 200 shed 0.9% to 8,666.70, India’s BSE Sensex rose less than 0.1% to 81,208.37 and Taiwan’s TAIEX slid 0.5% to 23,434.38.
“US and European equity futures are pointing negative, Asian stocks are taking a beating and the DXY index is still rising,” Benjamin Picton, senior market strategist at Rabo Bank, said in a commentary about Trump’s new order updating reciprocal tariff rates.
“The USA is cherry-picking high value-add industry for its own economy while forcing trading partners to grant preferential market access for its exports and supply it with cheap imports. Make no mistake, this is imperial trade,” he added.
Mizuho Bank noted in “somewhat a turn of the tables, Asia (and in particular Southeast Asia) which was harder hit post-‘Liberation Day’ now appear to be in a better position by virtue of tariffs differentials though intra-regional differences remain small.”
On Wall Street on Thursday, stocks capped the trading day with more losses after an early big tech rally faded and a health care sector pullback led the market lower.
The S&P 500 fell 0.4%, its third straight decline. The benchmark index, which is just below the record high it set Monday, notched a 2.2% gain for the month of July and is up 7.8% so far this year.
The Dow Jones Industrial Average lost 0.7% and the Nasdaq composite closed less than 0.1% lower.
Roughly 70% of stocks in the S&P 500 lost ground, with health care companies accounting for the biggest drag on the market.
Health care stocks sank after the White House released letters asking big pharmaceutical companies to cut prices and make other changes in the next 60 days. Eli Lilly & Co. fell 2.6%, UnitedHealth Group slid 6.2% and Bristol-Myers Squibb dropped 5.8%.
Gains by some big technology stocks with hefty values helped temper the impact of the broader market’s decline.
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