SYDNEY- Global stocks fell on Thursday, led by heavy losses in Japan and South Korea, after US President Donald Trump announced new tariffs on auto imports, with European stock futures also pointing to a lower open.
Trump late on Wednesday announced plans for long-promised 25 percent tariffs on automotive imports. Analysts expect the move to hit European, Japanese and South Korean companies at most.
Japan’s Nikkei fell 1 percent, while South Korea’s KOSPI dropped 1.3 percent. Toyota Motor shares tumbled 2.6 percent, and both Mazda Motor and Subaru plunged about 6 percent.
European stock markets are set for a lower open, with pan-European STOXX 50 futures down 0.5 percent and FTSE futures 0.2 percent lower.
Trump also said planned reciprocal tariffs on all countries will be “lenient”. On China, he said he may give Beijing some reduction in tariffs to get a deal done to sell TikTok.
Chinese shares outperformed the region, with the blue chip index up 0.4 percent and Hong Kong’s Hang Seng rallying 1 percent. Chinese EV giant BYD jumped 2.3 percent.
Jason Chan, a senior investment strategist at Bank of East Asia, said Chinese automakers have limited exposure to the US market, while Trump’s comment about TikTok suggest there is room for negotiations.
“It now looks like he’s more aggressive toward other markets instead of focusing all his efforts on China, so that could somehow help cushion the sentiment for China and Hong Kong,” said Chan.
Gains in Chinese shares helped MSCI’s broadest index of Asia-Pacific shares outside Japan to trade flat on Thursday.
