Asian markets opened lower on Friday morning, as traders felt their way through a mix of positive and worrying signals.
The strong US GDP report surprised some investors by reducing bets on an upcoming rate cut, which pushed the dollar higher and put pressure on export-heavy economies across Asia.
Japan and South Korea slipped a bit amid concerns about a stronger currency hurting their exports, while China and Hong Kong were more cautious.
Throw in fresh US tariffs on pharmaceuticals and heavy trucks, and traders were rightfully a little on edge. No big sell-off yet, but a definite sense of watchfulness as investors waited for more clues from the US inflation data coming later in the day.
Asian markets: Nikkei 225, Kospi 100 slip at open
The Nikkei 225 kicked off the trading day a bit shaky, slipping around 0.7%.
Traders seemed cautious as the new US tariffs on things like pharmaceuticals and heavy trucks made their way into the headlines.
While worries about these tariffs weighed on the market, Japan’s cooler inflation numbers offered some consolation.
Folks here were hoping that the Bank of Japan might ease off on any tough rate hikes for now, which helped keep losses from snowballing.
So, even though the mood was a little cautious, buyers were still ready to jump back in when the opportunity arose.
Over in South Korea, the Kospi 100 had a similar start, dropping over 2% at open.
Tech stocks, which make up a big chunk of the index, felt the heat from uncertainties about supply chains and the stronger dollar squeezing exports.
Despite that, the energy and materials sectors managed to hold their ground a bit, stopping the slide from getting worse.
Hang Seng, China CSI 300 trade in red after pharma tariffs
Hong Kong’s Hang Seng Index opened lower on the morning of Friday, amid growing jitters over tariffs.
The index fell 0.9% to 26,238.05, putting it on track for its first weekly decline in September with a 1.2% loss.
Investors grew cautious as drugmakers, a significant part of the market, tumbled in response to the proposed 100% tariff.
Biotech names Wuxi Biologics and Wuxi AppTec dropped 3.9% and 3.4%, respectively. Tech giants Alibaba and Tencent also slipped, extending recent declines after Alibaba hit near four-year highs earlier this week.
On the mainland, China’s CSI 300 Index opened down 0.3%, while the Shanghai Composite retreated 0.4%.
The broader Chinese market mirrored a global pullback as valuation concerns resurfaced after US stocks suffered a third straight day of losses.
India’s stock markets are expected to open under pressure on Friday, following the US announcement of tariffs on pharmaceutical imports.
The Sensex and Nifty 50 are likely to face selling pressure, particularly on pharma and export-oriented stocks, as India is a major supplier of generic medicines to the US.
Traders remain cautious amid concerns about the impact of these tariffs on earnings and exports. However, domestic economic indicators and corporate earnings will also play a role in market direction.
Investors are watching global cues closely while balancing hopes for ongoing economic recovery and risk from international trade tensions.
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