Asian Markets Mixed as Trump Sparks Fresh Tariff Worries

Asian markets opened Wednesday on a mixed note. Investors reacted to weak U.S. economic data and a fresh tariff warning from U.S. President Donald Trump. He announced plans to impose new tariffs on semiconductors and chips within the coming week.

This surprise move triggered caution across the Asia-Pacific region. Australia’s S&P/ASX 200 rose 0.38% at the open, hitting a record high. However, Japan’s Nikkei 225 fell 0.12%, while South Korea’s Kospi and Kosdaq dropped 0.64% and 0.57%, respectively.

Speaking on Tuesday, Trump said, “We’re going to announce tariffs on semiconductors and chips… because we want them made in the U.S.” His comments added fresh uncertainty to the already fragile trade environment.

Overnight, U.S. stocks fell across the board. The S&P 500 lost 0.49%, the Nasdaq dropped 0.65%, and the Dow Jones Industrial Average edged down 0.14%.

Indian Markets Cautious Ahead of RBI Policy Decision

Indian equities are expected to open flat on Wednesday. Gift Nifty futures were trading around 24,688, down 20 points from the previous close, suggesting a muted start for the Sensex and Nifty 50.

Investors are closely watching the RBI’s monetary policy announcement. The central bank, led by Governor Sanjay Malhotra, is widely expected to leave interest rates unchanged during its August meeting.

On Tuesday, the Sensex closed 308.47 points lower at 80,710.25, while the Nifty 50 dropped 73.20 points to 24,649.55. Traders remained cautious amid global headwinds and anticipation of domestic policy cues.

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