Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Feb. 5, 2025. (AP Photo/Ahn Young-joon)
Hong Kong, China — Asian markets stumbled Wednesday and gold hit a new record as investors kept tabs on China and the United States after they exchanged tariffs, sparking fears of another debilitating trade war between the economic superpowers.
Shanghai, which reopened after a week-long break, and Hong Kong were among the main losers as e-commerce firms took a hit from news that the US Postal Service was suspending inbound parcels from China and Hong Kong.
Article continues after this advertisementThe tepid performance came despite a positive lead from Wall Street, where there was a sigh of relief that US President Donald Trump had reached a deal to delay 25 percent duties on imports from Canada and Mexico.
FEATURED STORIES BUSINESS BIZ BUZZ: BSP to help fight ‘love scams’ BUSINESS DoubleDragon offers 7.77% rate for 7-year bonds BUSINESS Honda asks Nissan to become subsidiaryDisappointing earnings from Google-parent Alphabet and Advanced Micro Devices added to the unease over the tech sector, which has already been roiled by the unveiling of a new chatbot by Chinese startup DeepSeek.
READ: Trump in ‘no rush’ to speak with China’s Xi despite tariff battle
Article continues after this advertisementAll eyes were on Washington and Beijing after they renewed their trade spat, though analysts said China’s apparently more measured approach provided some hope that a full-blown crisis could be avoided.
Article continues after this advertisement“Regarding China’s counter measures, we think that the tariffs are less than what we had expected in our view. The move is largely symbolic given that only about 12% of total imports from the US would be subject to tariffs,” said Kai Wang, Asia equity market strategist at Morningstar.
s888 live register Article continues after this advertisement“A key takeaway from this development, at least for now, is that fundamentally there is less risk implied than expected before.
“However, escalation of the trade war remains a risk given Trump’s history of unpredictable behaviour. Therefore, the volatility risk remains on the table for the next four years at least,” Wang added.
Article continues after this advertisementEconomists at HSBC Global Research added that China’s “moves so far are more measured compared with the universal 10 percent tariff imposed by the US, suggesting a likely different playbook than a tit-for-tat strategy, though we acknowledge the risk of escalation has increased”.
Hong Kong fell 1.2 percent, with e-commerce giant JD.com sinking more than four percent and rival Alibaba losing more than one percent on news of the US Postal Service suspension.
Trump’s tariff announcement against China included the removal of an allowance — used by China’s e-commerce firms — that exempted small packages worth less than $800 from duties.
The suspension does not involve letters and flat mail.
There were also losses in Tokyo, Singapore, Wellington and Jakarta, though Sydney, Seoul, Taipei and Manila rose.
Gold hit a fresh peak of $2,853.82 as investors rushed into the safe-haven metal.
Tech firms were again under pressure after Alphabet sank 7.5 percent in after-hours trade in New York owing to disappointment at its lower-than-expected revenue growth and its ambitious 2025 capital spending forecast.
Advanced Micro Devices also sank in post-close business.
The tech sector has been feeling some pain since DeepSeek’s arrival on the scene with its chatbot, which apparently was developed at a fraction of the cost of similar tools made by US firms, stoking concerns about the eye-watering investments made in AI in recent years.
On currency markets, the yen strengthened against the dollar following data showing nominal wages in Japan rose far more than expected last month and at the fastest pace since 1997.
That firmed expectations the country’s central bank would continue to hike interest rates this year.
Key figures around 0230 GMTTokyo – Nikkei 225: DOWN 0.2 percent to 38,727.19 (break)
Hong Kong – Hang Seng Index: DOWN 1.0 percent to 20,574.20
Shanghai – Composite: DOWN 0.5 percent to 3,236.09
Euro/dollar: DOWN at $1.0378 from $1.0383 on Tuesday
Pound/dollar: DOWN at $1.2477 from $1.2480
Dollar/yen: DOWN at 153.66 yen from 154.32 yen
The video, published by Ukraine’s Center for Strategic Communications and Information Security, which operates under the Culture and Information Ministry, allegedly shows North Korean soldiers standing in line to pick up bags, clothes and other apparel from Russian servicemen. The Associated Press could not verify the video independently.
Euro/pound: UP at 83.17 pence from 83.16 pence
West Texas Intermediate: UP 0.2 percent at $72.82 per barrel
Brent North Sea Crude: FLAT at $76.22 per barrel
New York – Dow: UP 0.3 percent at 44,556.04 (close)
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London – FTSE 100: DOWN 0.2 percent at 8goplay,570.77 (close)
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