Asia report: Most markets fall on US tariff whiplash
By Josh White
Date: Friday 30 May 2025
(Sharecast News) - Asia-Pacific markets mostly declined on Friday as investor sentiment was dented by renewed trade tensions and concerns over the US economy.
A US appeals court reinstated president Donald Trump's "reciprocal" tariffs after they were struck down by a federal court earlier in the week, fuelling uncertainty over the direction of US-China trade policy.
The Trump administration signalled it may seek an emergency stay from the Supreme Court.
Meanwhile, US Treasury secretary Scott Bessent said trade talks with China were "a bit stalled".
Stephen Innes, managing partner at SPI Asset Management, quipped that markets "limped into Friday" like a "bruised boxer still shaking off the last round".
"What started as a clean break in the tariff saga - a trade court branding Trump's global levies as illegal - has now devolved into a legal soap opera," he said.
"An appeals court tossed Trump's team a procedural lifeline, letting them plead their case into June.
"But instead of clarity, the result was another twist in the never-ending trade war narrative."
Innes said markets tried to run with it, but tripped over softer US macro prints while risk appetite evaporated, and the dollar faded back.
"Traders [in Asia] who had bet on tariff relief were met with headlines that read more like escalation than resolution.
"US-China negotiations? Stalled. Trump-Xi hotline? Still just a dial tone.
"Instead, the administration rolled out a string of tactical jabs - student visa revocations, new export curbs on chip design software and jet parts, and a global clampdown on Huawei's AI ambitions."
Most regional markets in the red, with Australasia the exception
Japan's Nikkei 225 fell 1.22% to 37,965.10, dragged lower by heavyweights Tokyo Electron, Lasertec, and Sony, which dropped 4.76%, 4.35%, and 4.03% respectively.
The broader Topix declined 0.37% to 2,801.57.
In Hong Kong, the Hang Seng Index lost 1.2% to close at 23,289.77, with BYD Electronic down 6.03%, Tingyi off 5.01%, and ANTA Sports Products falling 4.17%.
Mainland Chinese stocks also retreated.
The Shanghai Composite dipped 0.47% to 3,347.49, while the Shenzhen Component shed 0.85% to 10,040.63.
Losses were led by Sunway, Gansu Guofang Industry & Trade Group, and Zhejiang Jinghua Laser Technology, each falling more than 10%.
South Korea's Kospi 100 dropped 1.03% to 2,684.77, weighed by steep declines in Mirae Asset Daewoo Securities, Hanjinkal, and Hanwha Techwin, which slid 6.1%, 5.8%, and 5.37% respectively.
The antipodean equity markets were a bright spot, however, with Australia's S&P/ASX 200 gaining 0.3% to reach 8,434.70.
Trading in Sydney was buoyed by a 5.89% rise in Ramsay Health Care, a 5.27% advance in Fisher & Paykel Healthcare, and a 4.07% gain in Treasury Wine Estates.
Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 1.12% to 12,418.89, led by Vista Group International up 6.96%, Fisher & Paykel Healthcare up 5.46%, and Scales Corporation up 5.4%.
In currency markets, the dollar was last down 0.17% on the yen to trade at JPY 143.97, while it strengthened 0.35% against the Aussie to AUD 1.5578, and rose 0.14% on the Kiwi, changing hands at NZD 1.6783.
Oil prices edged higher, with Brent crude futures last up 0.5% on ICE at $64.47 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.51% to $61.25.
Unemployment holds steady in Japan, as inflation accelerates in Tokyo
In economic news, Japan's unemployment rate held steady at 2.5% in April, matching market expectations and continuing a long-standing trend of tight labour conditions driven by demographic pressures.
The job-to-applicant ratio remained at 1.26, unchanged from March, indicating 126 job openings for every 100 job seekers.
Meanwhile, inflation in Tokyo accelerated, with the core consumer price index - excluding fresh food - rising 3.6% in May from a year earlier, up from 3.4% in April and surpassing the 3.5% expected by economists.
It marked the fastest pace since January 2023, driven partly by the expiry of earlier government subsidies.
The broader Tokyo CPI came in at 3.4%, slightly lower than April's 3.5%.
In South Korea, industrial production fell 0.9% in April on a seasonally adjusted monthly basis, reversing March's 2.9% gain and falling short of a forecasted 0.5% increase.
Year-on-year, output rose 4.9%, exceeding expectations but slowing from March's 5.3%.
Retail sales also declined 0.9% in April, the sharpest drop since August 2024 and the second consecutive monthly fall, raising concerns about domestic demand.
Australia's retail sales unexpectedly slipped 0.1% in April, missing forecasts for 0.3% growth and ending a three-month streak of gains.
The decline was largely attributed to weaker clothing sales.
Annual growth slowed to 3.8%, down from 4.3% in March, with total turnover reaching AUD 37.2bn.
The weaker data reinforced expectations that the Reserve Bank of Australia may continue cutting interest rates in the months ahead.
Reporting by Josh White for Sharecast.com.
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