• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Asian markets open: Nikkei, Hang Seng fall on 55% US-China tariff shock; Sensex poised for weak start

by June 12, 2025
written by June 12, 2025

A wave of uncertainty washed over Asian financial markets on Thursday, as traders struggled to digest a startling declaration from US President Donald Trump: a trade deal with China was “done,” and it came with a hefty price tag.

The resulting cautious sentiment painted a mixed picture across the region’s bourses, with investors weighing the framework of the new agreement against a backdrop of shifting economic data.

The initial reaction was a flight from risk in key markets. In Tokyo, Japan’s benchmark Nikkei 225 slid 0.72%, while the broader Topix index fell 0.46%.

The pessimism extended to Hong Kong, where the Hang Seng index dropped 0.80%, and to mainland China, with the CSI 300 losing 0.23%.

Bucking the trend, however, were markets in South Korea, where the Kospi climbed 0.34%, and Australia, where the S&P/ASX 200 posted a modest gain of 0.25%.

Trump’s ‘done deal’ delivers 55% tariff shocker

The primary catalyst for the market’s unease was the nature of the trade deal itself.

In a post on his Truth Social platform, President Trump announced the agreement was “done, subject to final approval with President Xi and me.”

He detailed a framework where China would supply magnets and “any necessary rare earths,” and the US would permit Chinese students to attend its universities.

But it was the tariff details that sent a jolt through the markets. Trump stated, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”

The figure was later confirmed by Commerce Secretary Howard Lutnick, who affirmed that tariffs on China will remain at that level.

This development overshadowed a report showing US consumer prices rose less than expected in May, a data point that would typically cheer investors.

The consumer price index climbed just 0.1% for the month, below the 0.2% forecast, with core inflation also coming in softer.

Despite this, US stock futures retreated, with S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures all dipping around 0.2%.

The news failed to inspire confidence, as investors grappled with the implications. “That didn’t excite stock or bond investors,” Ed Yardeni, president of Yardeni Research, wrote in a note published Thursday.

“Perhaps, they were unsettled that Trump also said he is less confident that Iran will agree to stop uranium enrichment in a nuclear deal with Washington,” he added.

The sentiment was echoed by economists at ANZ, who noted in a report that “Equities pulled back as the market considered the reality of much higher tariffs being here to stay.”

Sensex, Nifty brace for lower start amid global jitters

The cautious mood is set to spill over into Indian markets, where benchmark indices Sensex and Nifty 50 are likely to see a negative start to Thursday’s session.

Trends on Gift Nifty, an early indicator of the Nifty 50’s direction, pointed to a lower opening, trading around the 25,171 level—a discount of nearly 40 points from the Nifty futures’ previous close.

This follows a day of choppy trading on Wednesday, where the domestic equity market ended with marginal gains.

The Sensex added 123.42 points, or 0.15%, to close at 82,515.14, after facing selling pressure near the 82,700 mark.

The Nifty 50 settled 37.15 points, or 0.15%, higher at 25,141.40, though it continued to encounter a significant hurdle around the 25,200 level.

Bank of Japan on sidelines as tariff fears outweigh inflation

Looking ahead, all eyes are turning to the Bank of Japan (BoJ), which is expected to keep its monetary policy unchanged when it meets next week.

The central bank faces a delicate balancing act, with rising domestic inflation clashing with fears of a global slowdown sparked by the very trade tensions rattling markets.

Japan’s core inflation hit 3.5% in April, its highest level since January 2023, driven largely by surging rice prices.

However, policymakers seem unconvinced that this inflation is sustainable.

“The Bank of Japan (BoJ) will keep its fireworks in the box when it meets next Monday and Tuesday,” Moody’s Analytics wrote in a note published Thursday.

The note cited weak economic data and the stalled trade talks as key deterrents to a policy shift.

“The central bank wants to see demand-driven inflation before tightening aggressively, but there’s preciously little evidence of that,” Moody’s said.

The post Asian markets open: Nikkei, Hang Seng fall on 55% US-China tariff shock; Sensex poised for weak start appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Aluminum and steel tariffs spark rise in secondary production, price divergence
next post
Taiwan ramps up coast guard and military readiness in face of Beijing’s ‘gray zone’ warfare

related articles

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Senate passes annual defense policy bill with transgender care restrictions and pay boost for junior troops

    December 18, 2024
  • House Oversight probes FCC’s expedited approval of Soros purchase of 200+ radio stations ahead of election

    September 26, 2024
  • Trump admin breaking modern presidential staffing records, hiring ‘thousands of America First warriors’

    March 31, 2025
  • Biden defiantly charges ahead with election run despite speculation he would drop out this weekend

    July 21, 2024
  • House Democrat leaves congressional DOGE caucus, saying Musk is ‘blowing things up’

    February 7, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,498)
  • Investing (634)
  • Stock (852)

Latest Posts

  • ‘It makes no sense’: Jordan says FBI stonewalling requests for briefing on Iran hack of Trump campaign

    October 4, 2024
  • GOP rep who returned to Congress after eight-year break credits Trump with unifying party

    February 16, 2025
  • SEN. RAND PAUL: Kennedy is confronting ‘corrupt’ health agencies to Make America Healthy Again

    May 28, 2025

Recent Posts

  • Biden jokes about impending exit from the White House: ‘Looking for a job’

    August 14, 2024
  • Rubio bans overseas outposts commenting on foreign elections unless there’s ‘clear and compelling’ US interest

    July 17, 2025
  • Nasdaq 100 Future: Market Trends & Nvidia’s Impact

    August 29, 2024

Editor’s Pick

  • Solana and Cardano: Solana is driving bullish momentum again

    August 14, 2024
  • FBI launches probes into 3 children’s hospitals for alleged genital mutilation of minors

    June 24, 2025
  • US-China trade talks and Washington’s decade-long effort to block China’s tech surge

    June 12, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock