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ASIA STOCKS: Wider Asian Equities Mixed On Tariff & German Fiscal News

ASIA STOCKS
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Asian equity markets are mixed today, driven by a blend of global and regional factors. Optimism over Germany’s expansive fiscal overhaul and China’s ambitious 5% growth target for 2025, signaling potential stimulus, lifted sentiment for export-oriented and tech stocks. The U.S. decision to delay auto tariffs on Mexico and Canada by a month eased pressure on carmakers, boosting their shares, while a rebound in U.S. indices like the S&P 500 and Nasdaq fueled gains in IT and AI-related sectors. Steel stocks surged due to China’s pledge to cut output, Germany’s spending plans, and Trump’s proposed Alaska gas pipeline, enhancing supply-side dynamics. However, tariff uncertainties, particularly the U.S. push for zero import tariffs from India, weighed on Indian automakers, while Malaysia’s semiconductor ambitions with Arm Holdings drove gains in its tech sector.
 
  • South Korean stocks extended gains, with the KOSPI rising 0.70%. Auto and IT sectors led the rally, driven by the U.S. suspension of new auto tariffs on Mexico and Canada and a strong U.S. market rebound. Hyundai Motor rose 1.28%, Kia jumped 2.19%, Naver surged 5.06%, and Kakao climbed 4.06% on AI optimism. Steel stocks also soared, with Hyundai Steel up 10%, its highest since July 16, POSCO Holdings is also up 6.7%, fueled by China’s output cut pledge and global steel sentiment. 
  • Taiwan's TAIEX is trading 0.40% lower today, with TSMC down 1%.
  • Japanese stocks advanced, with the Topix Index up 1.3% and the Nikkei rising 1%. Exporters led gains, buoyed by Germany’s fiscal overhaul and the U.S. delay on auto tariffs from Mexico and Canada. Sony rose 4.3%, significantly contributing to the TOPIX climb. Carmakers and tech shares rallied after a strong Nasdaq recovery, while defense and machinery stocks tied to Europe made up over half of the Nikkei 225’s top gainers. Rising bond yields, with Japan’s 10-year hitting 1.5%, also supported bank stocks.
  • The ASX 200 is 0.70%, diverging from Wall Street’s overnight rally. Tariff concerns, particularly on Canadian and Mexican oil imports, pushed Brent crude below $US70 dragging energy stocks down over 2%. Woodside, the worst performer, shed 4.4% to $23.07. Mining giants BHP (-0.3%) and Rio Tinto (-1.3%) slipped despite iron ore holding near $US100, while utilities like APA Group and AGL lost over 1.5%. New Zealand’s NZX 50 index remaining nearly unchanged
  • Indian automakers faced potential declines after Reuters reported U.S. demands for zero import tariffs as part of a bilateral trade deal. India’s hesitation to eliminate car duties immediately, though open to further cuts, created uncertainty. The Indian market has seen significant outflows, as foreign investors dump nearly $15b since the start of Jan, the Nifty 50 has found some support today, up 1.15%.
  • Malaysia’s equity market saw gains in its semiconductor-related stocks following a decade-long pact with Arm Holdings Plc to advance chip design and technology. This deal aims to shift the nation from assembly to advanced production, supporting integrated circuit design, equipment manufacturing, and outsourced semiconductor services. However, the broader market struggles with the KLCI down 0.30% and 2.80% lower over the past week.
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Asian equity markets are mixed today, driven by a blend of global and regional factors. Optimism over Germany’s expansive fiscal overhaul and China’s ambitious 5% growth target for 2025, signaling potential stimulus, lifted sentiment for export-oriented and tech stocks. The U.S. decision to delay auto tariffs on Mexico and Canada by a month eased pressure on carmakers, boosting their shares, while a rebound in U.S. indices like the S&P 500 and Nasdaq fueled gains in IT and AI-related sectors. Steel stocks surged due to China’s pledge to cut output, Germany’s spending plans, and Trump’s proposed Alaska gas pipeline, enhancing supply-side dynamics. However, tariff uncertainties, particularly the U.S. push for zero import tariffs from India, weighed on Indian automakers, while Malaysia’s semiconductor ambitions with Arm Holdings drove gains in its tech sector.
 
  • South Korean stocks extended gains, with the KOSPI rising 0.70%. Auto and IT sectors led the rally, driven by the U.S. suspension of new auto tariffs on Mexico and Canada and a strong U.S. market rebound. Hyundai Motor rose 1.28%, Kia jumped 2.19%, Naver surged 5.06%, and Kakao climbed 4.06% on AI optimism. Steel stocks also soared, with Hyundai Steel up 10%, its highest since July 16, POSCO Holdings is also up 6.7%, fueled by China’s output cut pledge and global steel sentiment. 
  • Taiwan's TAIEX is trading 0.40% lower today, with TSMC down 1%.
  • Japanese stocks advanced, with the Topix Index up 1.3% and the Nikkei rising 1%. Exporters led gains, buoyed by Germany’s fiscal overhaul and the U.S. delay on auto tariffs from Mexico and Canada. Sony rose 4.3%, significantly contributing to the TOPIX climb. Carmakers and tech shares rallied after a strong Nasdaq recovery, while defense and machinery stocks tied to Europe made up over half of the Nikkei 225’s top gainers. Rising bond yields, with Japan’s 10-year hitting 1.5%, also supported bank stocks.
  • The ASX 200 is 0.70%, diverging from Wall Street’s overnight rally. Tariff concerns, particularly on Canadian and Mexican oil imports, pushed Brent crude below $US70 dragging energy stocks down over 2%. Woodside, the worst performer, shed 4.4% to $23.07. Mining giants BHP (-0.3%) and Rio Tinto (-1.3%) slipped despite iron ore holding near $US100, while utilities like APA Group and AGL lost over 1.5%. New Zealand’s NZX 50 index remaining nearly unchanged
  • Indian automakers faced potential declines after Reuters reported U.S. demands for zero import tariffs as part of a bilateral trade deal. India’s hesitation to eliminate car duties immediately, though open to further cuts, created uncertainty. The Indian market has seen significant outflows, as foreign investors dump nearly $15b since the start of Jan, the Nifty 50 has found some support today, up 1.15%.
  • Malaysia’s equity market saw gains in its semiconductor-related stocks following a decade-long pact with Arm Holdings Plc to advance chip design and technology. This deal aims to shift the nation from assembly to advanced production, supporting integrated circuit design, equipment manufacturing, and outsourced semiconductor services. However, the broader market struggles with the KLCI down 0.30% and 2.80% lower over the past week.