Asia report: Markets led lower by Trump's US metals tariffs

Markets in Asia finished lower on Friday, led below the waterline by Japan, with carmakers and steel producers seeing serious losses across the region.

In Japan, the Nikkei 225 was down 2.5% at 21,181.64, as the yen strengthened 0.87% against the dollar to last trade at JPY 105.32, as investors rushed to the safe haven currency.

Among steelmakers on the Tokyo bourse, JFE Holdings lost 2.6% and Kobe Steel was off 2.68%.

Carmakers were also down, with Honda Motor losing 3.78% and Toyota falling 2.37%.

Technology was another sore sector, with SoftBank sliding 3.55% and Sony slipping 1.23%.

On the mainland, the Shanghai Composite was 0.59% lower at 3,254.58, and the smaller, technology-heavy Shenzhen Composite lost 0.64% to 1,822.22.

South Korea’s Kospi was off 1.04% at 2,402.16, while the Hang Seng Index in Hong Kong lost 1.48% to 30,583.45.

Manufacturers and technology plays were the big losers in Seoul, with Samsung Electronics 2.21% below the mark by the end of the session.

Among steelmakers on the Korean peninsula, Hyundai Steel was off 2.99% and Posco fell 3.6%, while carmaker Hyundai Motor was 3.41% lower.

The losses followed a red session on Wall Street, which came after President Trump announced tariffs of 25% for steel and 10% for aluminium, to be implemented across all imports.

Investors were concerned that the action could result in a trade war as other nations retaliated, as well as inflationary effects of the move.

“Given uncertainty whether the move presages a path of increased tariff application for the US, we expect risk sentiment to remain fragile for now,” noted Mizuho Bank strategist Chang Wei Liang.

Oil prices were lower, with Brent crude last down 0.52% at $63.50 per barrel and West Texas Intermediate off 0.56% at $60.65.

In Australia, the S&P/ASX 200 slid 0.4% to settle at 5,928.90, with all sectors in the red other than the gold subindex, which was ahead 1.06% as investors clambered for the safe metal.

Among the major miners, Rio Tinto was down 1.27%, while steelmaker Bluescope Steel went against the trend among its regional peers and managed to climb 0.8%.

Rio Tinto is a major producer of aluminium in Australia and New Zealand.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 fell 0.7% to 8,288.42, led lower by dairy producer and exporter Synlait, which gave up recent gains to finish down 3.2%.

Steel products manufacturer Steel & Tube felt the effects of global sentiment, slipping 1.4%.

It was a mixed day for the down under dollars, with the Aussie last 0.07% stronger on the greenback at AUD 1.2885 and the Kiwi weakening 0.16% to NZD 1.3817.