Tokyo, Japan – Asian equities experienced a slight uptick on Thursday, with markets reacting to US President Donald Trump’s latest tariff announcements and underwhelming earnings from Nvidia Corp. Shares in Australia, Hong Kong, and Japan saw gains, while South Korean shares declined. Chinese shares showed fluctuations in opening trade, and a gauge of the region’s equities saw a second consecutive day of growth. Futures contracts for the S&P 500 and Nasdaq 100 remained steady following slight advances the previous day.
Investor sentiment was impacted by Trump’s announcement of a 25% tariff on the European Union, along with the enforcement of previously mentioned tariffs on Mexico and Canada starting April 2. However, the president’s statements were at times inconsistent, leading to confusion among investors. Currency markets were also affected, with the dollar seeing an increase and stopping the decline of the Canadian dollar and Mexican peso. This uncertainty has contributed to the ongoing weakening of equities and cryptocurrencies throughout the week.
New research indicates that Trump’s recent tariffs on imports from China may have a more significant impact on the American economy than official US trade data suggest. The fluctuating statements from the administration regarding the timing and extent of tariffs have left investors uncertain about the future direction of trade policies. Marvin Loh of State Street noted that the conflicting statements have kept investors on edge, leading to ongoing debates about potential delays or changes to the tariffs.
In the midst of these developments, Nvidia’s quarterly numbers failed to meet investors’ high expectations, causing the chipmaker’s shares to fall in after-hours trading. Despite delivering positive results, Nvidia’s performance was not as impressive as anticipated, leaving investors disappointed. The company’s revenue forecast for the current quarter, which was described as the “fastest product ramp” in its history, initially drove positive market reactions.
Looking ahead, the Group-of-20 finance ministers and central bank governors will convene in Cape Town, while Europe awaits the release of euro-zone consumer confidence figures. In the US, gross domestic product and initial jobless claims data are also scheduled for release. The AI industry remains a focal point of interest, with concerns about data center spending weighing on investor sentiment. Despite ongoing uncertainties in the market, the outlook for the global economy continues to evolve as various geopolitical and economic factors come into play.