By Stella Kiu
After US President Donald Trump announced a new tariff on auto imports, European stock futures also pointed to less open, Sydney (Reuters) -Global Stocks fell on Thursday due to heavy losses in Japan and South Korea.
Trump on Wednesday announced a long -term tariff plans on late automotive imports. Analysts hope that European, Japanese and South Korean companies will be the most hit.
Japan’s Nikkei fell 1%, while South Korea’s Kospi fell 1.3%. Toyota Motor’s shares declined by 2.6%, and both Mazda Motor and Subaru recorded a decline of about 6%.
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The European stock markets are determined for the low open, with a pan-European Stockx 50 futures 0.5% and FTSE futures 0.2% lower.
Trump also said that the mutual tariffs employed on all countries would be “generous”. On China, he said that he could give some deficiency in tariff to Beijing to make a deal to sell Tiktok.
Chinese stocks improved the region, with the Blue Chip index 0.4% and Hong Kong’s Hang Seng rally up to 1%. Chinese EV veteran bide made a jump of 2.3%.
Jason Chan, a senior investment strategist at Bank of East Asia, said Chinese vehicle manufacturers have limited performance in the US market, while Trump’s comment about Tikok suggested that there is a place for dialogue.
Chan said, “Now it seems that it is more aggressive towards other markets than to focus on all its efforts on China, so that somehow can help reduce the spirit for China and Hong Kong,” Chan said.
Benefits in Chinese stocks on Thursday helped in the widespread index of MSCI of Asia-Pacific shares outside Japan.
Wall Street Futures also resumed the earlier damage and increased to 0.1%. Wall Street already reduced rapidly on expectations of such a step, with more than 2% of Tech-Havi Nasdaq on Wednesday.
After the tariff declaration, American vehicle manufacturers lost the ground after the bell. General Motors recorded a 6%decline, while the stocks in Ford fell nearly 5%.
“It’s not feeling at this point as if we are going to see a day of full carnez there,” Tony Cyamore said, IG analyst.
“I think time has caught people from the guard, but I do not think the announcement was caught by people in detail the people … so now how do they choose to give only European, South Korean and Japanese answers.”
Japanese Prime Minister Shigeru Ishiba said that all the options were on the table in response to the American tariff. Canada said that it could implement retaliatory duties, while the European Union expressed regrets but was demanding a resolution of talks.
Analysts have warned that Trump’s tariff plans can prevent US inflation, the Federal Reserve has already stopped the cycle that reduces its policy.
St. Louis Fed Chairman Alberto Musalum said on Wednesday that it was possible that inflation would be greater and there was no urge to cut interest rates for the Fed.
In the money markets, the dollar index, which measures greenback against six leading colleagues, retreated from 0.3% to 104.32, at the top of three weeks of 104.71 overnight.
The Euro touched a three-week low of $ 1.0731, but bounced with a 200-day moving average and was 0.3% at $ 1.0780. On the other hand, Yen recovered some overnight loss and bounced 0.2% to 150.21 at 0.2% per dollar on Thursday.
Treasury yields remained stable in Asia after overnight. The benchmark remained stable at 10-year-old Treasury Yield 4.3537%, obtained 5 basis points overnight.
Tariff uncertainty sent gold 0.5% more $ 3,035 an ounce, which is not far from a record high of $ 3,057.
Oil prices were moderately higher. Brent futures rose 0.1% to $ 73.87 per barrel, while US crude futures CLC1 also added 0.1% to $ 69.73 per barrel.
(Reporting by Stella Kiu and Gexying Lee; Editing by Kim Cogil and Jamie Freed)
Disclaimer: This report is an auto generated from Reuters News Service. ThePrint does not have any responsibility for its content.