Asian stock markets faced declines due to escalating trade tensions affecting the global economic outlook. In Japan, the Nikkei index fell by 3.0% to 33,585.58 points, with electronics, pharmaceuticals, and automotive stocks leading the downturn. Notably, Sony Group's shares dropped 7.4%, Chugai Pharmaceutical fell 6.4%, and Nissan Motor decreased by 6.3%.
South Korea's Kospi index closed down 0.5% at 2,432.72 points, led by declines in automotive stocks. Hyundai Motor and Kia saw their shares fall by 5.1% and 7.0%, respectively, as U.S. tariffs on imported cars weighed on market sentiment. The previous day's gains, driven by a temporary suspension of tariffs by President Trump, were erased. However, the 25% U.S. auto tax, effective since early April, remains unchanged. Shinhan Securities analyst K.R. Park highlighted potential additional costs for Hyundai due to these tariffs, estimating an annual increase of 8.8 trillion won ($6.05 billion), and lowered the stock's target price by 6.9% to 270,000 won.
Australia's S&P/ASX 200 index fell 0.8% to 7,646.5 points, recovering some early losses but still closing down. The index experienced significant volatility this week, marking the largest single-day drop and rise since March 2020. Despite a 0.4% rise in consumer discretionary stocks, other sectors, including banking, real estate, and healthcare, declined. The ASX 200 ended the week down 0.3%, remaining in correction territory, 11% below its February peak.
