Asian stocks rise as South Korea elects new leader amid Trump’s steep steel and aluminium tariff rollout

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.