People crossing the street in Shibuya, Tokyo.
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Asia-Pacific markets mostly fell Tuesday, as investors weighed U.S. President Donald Trump’s escalatory rhetoric on tariffs.
Trump reportedly threatened to “200% tariffs or something” on China if it does not export rare-earth magnets to the U.S, while also warning levies on countries that do not remove digital taxes and related regulations.
In another move roiling markets, the U.S. president fired Federal Reserve Governor Lisa Cook late Monday stateside, according to a letter he posted on Truth Social.
The Japanese yen, which is traditionally viewed as a safe asset during times of tumult, gained 0.3% against the dollar at 147.32. The U.S. dollar index, which measures movements of the greenback against six major currencies, fell 0.16% following news of Cook’s termination.
Yields on 10-year U.S. Treasuries rose nearly 2 basis points to 4.2887%. Meanwhile, gold strengthened by 0.17% to $3,372 as of 9:40 a.m. Singapore time (9:40 p.m. ET Monday).
Investors also assessed the meeting between South Korean and U.S. presidents over fleshing out the trade deal framework announced last month that stipulated 15% tariffs on the Asian country’s exports to the U.S.
The Kospi index fell 0.78%, while the small-cap Kosdaq was up 0.34%.
In Japan, the Nikkei 225 declined by 1.01% while the broader Topix index fell 0.94%.
Australia’s S&P/ASX 200 benchmark dropped 0.41%.
Hong Kong’s Hang Seng index fell 0.44%, while mainland China’s CSI 300 was down 0.68% — if losses hold, the index will snap a four-session winning streak.
U.S. equity futures were little changed in early Asia hours, as investors await Nvidia‘s earnings and reading of the U.S. Federal Reserve’s preferred inflation gauge.
Overnight stateside, all three key benchmarks fell with the tech-heavy Nasdaq down 0.22% at 21,449.29. The broad market S&P 500 traded 0.43% lower to settle at 6,439.32, while the 30-stock Dow Jones Industrial Average closed down 349.27 points, or 0.77%, at 45,282.47.
— CNBC’s Sean Conlon and Tanaya Macheel contributed to this report.