Asia-Pacific markets mixed on Thursday as investors weighed the potential fallout from Trump’s announcement of 25% tariffs on car imports set to take effect on April 2. Trump also confirmed that upcoming reciprocal tariffs would remain in place throughout his second term, fueling fears of retaliation and broader economic disruptions, leading to increased currency market volatility. Japan ( NKY:IND ) fell 0.95% to below 37,900, while the broader Topix Index lost 0.4% to 2,800 on Thursday, snapping a two-day rally. The Japanese yen rose toward 150 per dollar on Thursday, recouping some losses from the previous session. Japan will not rule out countermeasures against the Trump administration’s 25% tariff on U.S. car imports, Prime Minister Shigeru Ishiba said Thursday in parliament. China ( SHCOMP ) rose 0.31% above 3,370, while the Shenzhen Component gained 0.35% to 10,680 on Thursday, recovering some losses from recent sessions, and the offshore yuan rose to around 7.26 per dollar on Thursday, rebounding from a three-week low hit in the previous session. In China, industrial profits declined 0.3% in the first two months of the year, highlighting persistent deflationary pressures and escalating trade tensions with the US. China has significantly increased debt issuance in Q1 of 2025 to stimulate growth and stabilize the bond market. The finance ministry has raised a net CNY 1.45 trillion via sovereign notes, three times more than the same period last year and a record for any first quarter, Bloomberg News said. Caution also prevailed ahead of China’s March PMI data next week. Hong Kong ( HSI ) rose 0.73% to 23,824 in Thursday morning trade, extending strength for a second day amid broad-based gains. India ( SENSEX ) rose 0.52% to 77,674 in early deals on Thursday, halting losses from the prior session as traders engaged in profit booking amid uncertainty over U.S. tariffs. Traders continued to monitor developments surrounding the U.S.-India trade talks throughout the week, amid hopes of a positive result. Australia ( AS51 ) fell 0.38% to close at 7,969 on Thursday, ending a five-day winning streak. The Australian dollar climbed past $0.63 on Thursday, reversing losses from the previous session. Looking ahead, the Reserve Bank of Australia is set to meet next week, with markets widely expecting it to hold interest rates steady. In the U.S., on Tuesday, all three major indexes ended lower as tech stocks led a broad selloff amid mounting concerns over impending US tariffs . U.S. stock futures fell on Thursday after President Donald Trump announced a 25% tariff on all foreign-made cars: Dow +0.13% ; S&P 500 +0.08% ; Nasdaq +0.02% . Investors now turn their attention to Friday’s PCE price index report, the Federal Reserve’s preferred inflation measure. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia’s monthly CPI eased to three-month low of 2.4% in February Australia government unveils income tax cuts for 2026-27 Japan’s manufacturing downturn extends to ninth month; services activity turns negative Japan’s core inflation rate slows to 3% in February, exceeds forecast; food prices slow slightly People’s Bank of China keeps lending rates unchanged, in line with expectations
