TOKYO (AP) — Global equities experienced a mixed trading session on Wednesday as investors assessed the implications of escalating tariffs between the United States and China. In early trading, France’s CAC 40 index dipped by 0.3% to 7,881.94, while Germany’s DAX index fell by 0.5% to 7,881.94. The UK’s FTSE 100 index also retreated by 0.2% to 8,558.31. Futures for U.S. shares indicated a modest decline, with the Dow Jones down nearly 0.2% at 44,620.00 and the S&P 500 slipping by 0.5% to 6,034.25.
Earlier in the day in Asia, Japan’s Nikkei 225 index managed to recover from earlier losses and ended the session almost unchanged, edging up by less than 0.1% to 38,831.48. Notable movements in the Japanese market included an 8.2% surge in the stock price of Honda Motor Co. following reports that discussions about forming a joint holding company with Nissan Motor Corp. were falling apart, leading to a 4.9% decline in Nissan’s stock price. Australia’s S&P/ASX 200 index rose by 0.5% to 8,416.90. However, the Hang Seng index in Hong Kong dropped by 0.9% to 20,597.09, and the Shanghai Composite index in China lost 0.7% to 3,229.49.
South Korea’s Kospi index saw a notable jump of 1.1% to 2,509.27, as investors capitalized on recent price declines and drew optimism from the previous day’s rally on Wall Street. Some analysts believe that the tariffs imposed on China should be viewed separately from President Trump’s actions against other trading partners. There is a perception that Trump may opt to maintain tariffs on China for a more extended period, as observed during his first term, in an effort to create further distance between the United States and its geopolitical rival.
Trump’s decision to implement a 10% tariff on U.S. imports from China was met with retaliatory measures from China, including tariffs on select U.S. products and an antitrust inquiry into Google. Notably, China’s tariffs on U.S. coal, liquefied natural gas, crude oil, agricultural machinery, and large-engine cars are scheduled to come into effect on Monday, allowing a window for negotiations between Trump and Chinese President Xi Jinping.
Stephen Innes, managing partner at SPI Asset Management, warned that while current trade tensions have not reached a breaking point, they are precariously close to a critical juncture, advising against downplaying their significance. Trump recently agreed to postpone tariffs on imports from Canada and Mexico for a month, a
