(Sharecast News) - Asia-Pacific markets broadly declined on Wednesday after the latest round of US tariffs came into force, targeting specific countries and raising cumulative duties on Chinese goods to 104%.
The protectionist move from the Trump administration stoked investor concerns over global trade tensions, dragging major indices across the region into negative territory.
"Asian stocks continued to decline following Wall Street's downturn on Wednesday as president Donald Trump appeared poised to move forward with hefty 104% tariffs on Chinese products," said TickMill market strategy partner Patrick Munnelly.
"This situation has driven oil prices down to four-year lows, fueling global recession concerns that are affecting financial markets.
"Washington confirmed that a 104% tariff on imports from China would be implemented after midnight on Wednesday."
Munnelly said the news regarding tariffs and the possibility of an extended trade conflict between the two largest economies in the world led to significant volatility in financial markets.
"The S&P 500 experienced one of its most dramatic turnarounds in nearly 50 years, with the benchmark index dropping 4.2 percentage points from an initial positive start to end in negative territory.
"Consequently, the index has seen a decline of $5.8trn in market value, marking the largest four-day loss since its inception in the 1950s."
Markets broadly lower on Wednesday, Greater China the exception
South Korea's Kospi 100 fell 1.72% to 2,293.47, officially entering bear market territory.
Major losses came from Hybe, which dropped 6.72%, while Doosan Bobcat and Celltrion declined 5.75% and 5.27%, respectively.
Japan's markets led regional losses, with the Nikkei 225 plunging 3.93% to 31,714.03.
The Topix also fell 3.4% to 2,349.33.
Technology and electronics names were hit particularly hard, with Yaskawa Electric down 8.85%, Taiyo Yuden off 8.67%, and Lasertec losing 8.46%.
Australia's S&P/ASX 200 slid 1.8% to 7,375.00 as mining stocks tumbled.
Champion Iron and Nickel Mines both dropped over 14%, while Mineral Resources shed 12.09%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 slipped 0.71% to 11,806.55, weighed down by declines in Pacific Edge, Synlait Milk, and Sanford.
China's markets were an outlier, posting gains despite the tariff escalation.
The Shanghai Composite rose 1.31% to 3,186.81, and the Shenzhen Component added 1.22% to 9,539.89.
Top performers included CCS Supply Chain Management, Jiangsu Lianyungang Port, and Greattown Holdings, all up more than 10%.
Hong Kong's Hang Seng Index advanced 0.68% to 20,264.49, driven by strong gains in SMIC, Xiaomi, and Haidilao International.
In currency markets, the dollar was last down 0.64% on the yen, trading at JPY 145.33, as it weakened 0.93% against the Aussie to AUD 1.6621, and retreated 0.37% from the Kiwi, changing hands at NZD 1.8002.
Oil prices tumbled, with Brent crude futures last down 3.92% on ICE to $60.36 per barrel, and the NYMEX quote for West Texas Intermediate dropping 3.99% to $57.20.
Beijing stays resolute in face of US tariffs, NZ and India central banks cut rates
In economic news, Beijing reaffirmed its opposition to sweeping US tariffs on Chinese imports, warning of firm countermeasures to defend its interests.
China's foreign ministry on Wednesday urged Washington to adopt a more constructive and respectful stance if it wanted to resolve trade tensions through dialogue.
The remarks followed the implementation of cumulative tariffs totaling 104% on Chinese goods entering the US, a move that prompted Beijing to retaliate with a 34% tariff on all American imports starting 10 April.
In a separate move targeting e-commerce, US president Donald Trump signed an executive order raising tariffs on low-value shipments from China.
The new measures sharply increase duties on packages under $800, which had previously been exempt.
Starting 2 May, such shipments will face a 90% tariff or a minimum charge of $75, rising to $150 in June.
The policy was expected to heavily impact Chinese retailers like Shein and Temu that rely on low-cost postal shipments to American consumers.
South Korea responded to the growing trade pressures with a KRW 3trn (1.58bn) support package for its automotive sector, following a 25% US tariff imposed earlier in the month.
The assistance would include financial backing, tax breaks, and incentives aimed at easing the burden on Korean carmakers.
Monetary authorities in New Zealand and India also took action to counter the potential fallout from rising protectionism.
The Reserve Bank of New Zealand cut its benchmark interest rate by 25 basis points to 3.5%, citing downside risks to growth and inflation stemming from deteriorating global trade conditions.
It signalled further easing may be necessary as the economic impact of tariff policies becomes clearer.
India's central bank also reduced its policy rate by 25 basis points to 6%, in a move aimed at supporting domestic growth amid soft inflation and fresh trade headwinds.
The cut came just hours after new US tariffs on Indian goods took effect, with a 26% levy now in place.
Reporting by Josh White for Sharecast.com.
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