Asian stocks mixed as tariff concerns weigh heavily
Asian stock markets experienced mixed results on Friday amid growing concerns about US tariffs. Japan's stock market opened with gains, while South Korean shares fell. Futures for Hong Kong stocks also dropped. In the US, futures ticked up after the S&P 500 edged lower on Thursday, indicating investors are uncertain about the market's direction. The anxiety stems from upcoming tariffs announced by President Donald Trump, set to take effect on April 2. These tariffs include broad reciprocal duties and some sector-specific tariffs. Investors had hoped to gain insight from recent meetings of major central banks, including the Federal Reserve and the Bank of Japan. However, these meetings provided little clarity, leaving many feeling unsure about the global economy ahead of the tariff increases. Daniel Skelly from Morgan Stanley noted that while the market may have reached a low point recently, volatility is likely to continue. Investors remain sensitive to news and shifts in sentiment. Earnings reports added to the mixed signals. FedEx cut its profit outlook, causing its shares to drop, while Micron Technology provided a positive sales forecast and Nike reported stronger-than-expected results. In the US, existing home sales exceeded estimates, and jobless claims were in line with expectations, suggesting a stable labor market. Meanwhile, the US Treasury yields held steady, and the dollar index remained flat. The yen strengthened slightly due to a rise in core inflation. The British pound declined after the Bank of England decided to keep interest rates unchanged. Market participants are particularly wary of a significant event on Friday, known as "triple witching," when $4.5 billion in options contracts expire, which often leads to increased volatility. Michael Rosen from Angeles Investments warned that ongoing policy uncertainty will keep investor sentiment unstable. In other news, PDD Holdings, which operates the Temu online platform, reported slower revenue growth, attributed to fierce competition and US tariffs. Additionally, the European Union postponed a proposed tariff on American whiskey and is open to discussions with Trump regarding retaliatory actions.