BANGKOK, Thailand – Asian shares faced declines on Thursday despite a positive rebound on Wall Street following an optimistic update on U.S. consumer prices. U.S. futures faced losses and oil prices remained relatively stable. Amid concerns surrounding President Donald Trump’s trade war, Chinese markets experienced a slip, with the Hang Seng index in Hong Kong dropping by 0.7% and the Shanghai Composite index losing 0.4%. In contrast, Tokyo’s Nikkei 225 increased by 0.5% to 37,014.82.
The South Korean Kospi dipped slightly by 0.1% to 2,573.05, while Australia’s S&P/ASX 200 saw a 0.4% decrease to 7,756.10. Taiwan’s Taiex and India’s Sensex also experienced declines, while Bangkok’s SET slipped by 0.1%. The S&P 500 demonstrated volatility, gaining 0.5% to 5,599.30 after fluctuating between an early gain of 1.3% and a later loss. The Dow Jones Industrial Average also experienced sharp fluctuations before closing with a 0.2% loss at 41,350.93. In contrast, the Nasdaq composite rose by 1.2% to 17,648.45.
The latest inflation report indicated a lower-than-expected growth in overall prices for U.S. consumers. Companies within the artificial-intelligence sector led gains after facing recent losses due to concerns about overvaluation. Nvidia saw a 6.4% increase, reducing its year-to-date loss to 13.8%. Other companies, such as Super Micro Computer and GE Vernova, also saw positive growth.
Despite the overall positive outlook, certain businesses faced challenges due to the ongoing trade war initiated by President Trump. European Union tariffs on U.S. products, in response to U.S. steel and aluminum tariffs, led to declines in some companies’ stock prices. The uncertainty surrounding tariffs and related policies has started to impact consumer and business confidence. U.S. businesses are already witnessing changes in consumer behavior, with some seeing weaker demand for their products and services.
The recent inflation report has raised concerns about the impact of tariffs on consumer prices and overall inflation rates. The Federal Reserve, which paused interest rate cuts this year due to inflation concerns, faces the challenge of balancing economic growth with potential price increases. In the oil market, U.S. benchmark crude oil prices dropped slightly, while the U.S. dollar weakened against the Japanese yen but strengthened against the euro.
Overall, the global economic landscape continues to face uncertainties, driven by trade tensions and fluctuating market conditions. As investors monitor developments in the trade war and economic indicators, the future trajectory of markets remains uncertain.
The prevailing question remains on how policymakers will navigate these challenges to ensure sustainable economic growth and stability in the months ahead.