Asian stock markets moved up on Wednesday, due to gains in the US, while futures inched lower.
South Korea’s Kospi led the rally, rising 2.4% to 2,763.32 after liberal candidate Lee Jae-myung won the presidency. His win followed months of unrest, including a brief martial law under the now-removed conservative leader Yoon Suk Yeol.
Lee is expected to focus on economic revival through public spending and fresh trade talks with the US. News agency Associated Press quoted ING economist Min Joo Kang as saying that South Korea’s economy was already shrinking before Trump’s tariffs came into play — shrinking 0.2% in the first quarter — and warned that economic recovery remains a challenge.
The new South Korean president on Wednesday warned that trade protectionism posed a threat to the export-dependent country. "The rapid changes in the global order such as rising protectionism and supply chain restructuring pose a threat to our very survival," Lee said in a speech as he took office, in a reference to global trade chaos sparked by US president Donald Trump's sweeping tariffs.
Tokyo’s Nikkei 225 rose 1% due to gains in tech and pharma stocks. Toyota shares climbed 2% after it announced a $33 billion deal to acquire Toyota Industries and take it private. However, Toyota Industries shares dropped 12.5%.
In China, the Hang Seng gained 0.6% and Shanghai Composite added 0.3%. Taiwan’s Taiex also rose by 2.1%.
Investors are watching closely as president Donald Trump’s 50% tariff on steel and aluminium takes effect on Wednesday.
On Wall Street, the S&P 500 rose 0.6%, the Dow gained 0.5%, and Nasdaq was up 0.8%. Dollar General saw a major jump of 15.8% after reporting strong results.
However, many companies have paused future forecasts due to trade uncertainty. The OECD cut its US growth outlook to 1.6% for this year, down from 2.8%.
The job market remains steady, with more job openings reported in April. A key employment report is expected on Friday. Meanwhile, markets remain hopeful about potential trade deals between the US and countries like China, though no confirmed meeting with Xi Jinping has been announced.
Tech stocks like Nvidia and Broadcom led the US rally. Treasury yields stayed stable after weeks of volatility. Oil prices fell slightly, and the US dollar slipped against the yen.
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment