Singapore, Asia markets mixed at midday as Trump announces tariff rates on 14 countries
[SINGAPORE] Markets in Asia-Pacific were muted on Tuesday (Jul 8) as US President Donald Trump announced tariff rates on 14 countries.
Trump hit trading partners such as Malaysia (25 per cent), Indonesia (32 per cent), Cambodia and Thailand (36 per cent), as well as Laos (40 per cent).
Japan and South Korea were both dealt with 25 per cent tariffs.
14 countries have been sent these letters so far, Reuters said. Trump said these new tariffs will take effect on Aug 1, after a three-month tariff pause that was to end on Wednesday.
US markets have already slumped in response on Monday, with the Dow Jones Industrial Average tumbling more than 400 points, the S&P 500 falling about 0.8 per cent and the Nasdaq declining nearly 1 per cent.
At midday, Singapore’s Straits Times Index was trading 0.5 per cent up or 18.89 points higher at 4,050.75. Across the broader market, gainers outnumbered losers 255 to 186 with 763.94 million securities worth S$734.21 million traded.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The trio of local banks were mixed at midday. DBS lost 0.1 per cent to S$45.64. UOB was inched up 0.1 per cent at S$36.47, and OCBC rose 1 per cent to S$16.71.
The Hang Seng Index in Hong Kong rose 0.8 per cent to 24,073.04 at 12.11 pm. China’s CSI 300 Index, comprising stocks traded on the Shanghai and Shenzhen exchanges, also was up 0.7 per cent to 3,994.36 in the afternoon.
In the rest of Asia, Japan’s Nikkei 225 edged up 0.3 per cent, while South Korea’s Kospi rose 1.2 per cent at midday. Australia’s ASX 200 was down 0.07 per cent.
Vasu Menon, managing director, Investment Strategy, OCBC, said: “The expectations that Trump is once again engaged in a negotiating tactic rather than making serious tariff threats, offers hope to investors. There was no big fallout for Asian markets when trading resumed on Jul 8, a day after the White House sent letters to leaders of several countries announcing blanket tariffs ranging from 25 per cent to 40 per cent starting Aug 1.”
“Eventually, the possibility that the tariffs imposed will be nowhere as high as the draconian figures suggested on Apr 2, may bring relief to markets,” he added.
