Feb 18, (V7N) – Asian markets showed mixed performance on Wednesday as investors reacted to President Donald Trump's broadening tariff threats, while keeping an eye on US-Russia talks amid ongoing geopolitical tensions.

Trump announced potential 25% tariffs on auto imports, semiconductors, and pharmaceuticals, expanding his previous pledges to tax steel and aluminum imports. Analysts suggest the measures could be negotiation tactics, but fears of global economic strain persist.

China, a key target of Trump's trade policies, warned at the World Trade Organization that new tariffs could trigger inflation, market disruptions, and even a global recession.

Wall Street Gains, Asia Struggles
Despite a record high close for the S&P 500, Asian markets were mixed.

  • Gains: Shanghai, Singapore, Seoul, Wellington, and Manila rose.
  • Losses: Tokyo, Hong Kong, Taipei, Sydney, and Jakarta fell, with Tokyo hit by auto and semiconductor sell-offs following Trump's announcement.

Tech Stocks Weigh on Hong Kong
The Hang Seng Index fell 0.7%, weighed down by Baidu's disappointing earnings and warnings of near-term pressures. The tech sector, which had surged 15% in 2025 partly due to Chinese AI startup DeepSeek’s chatbot, faced profit-taking.

Geopolitical Focus: US-Russia Talks
Investors are closely watching Washington-Moscow negotiations after their top diplomats met in Saudi Arabia, agreeing to appoint teams to end the Ukraine war—excluding Europe and Kyiv.

Key Market Figures (0230 GMT):

Tokyo (Nikkei 225): -0.4% at 39,108.88
Hong Kong (Hang Seng): -0.7% at 22,825.77
Shanghai (Composite): +0.7% at 3,347.58

WTI Crude: +0.3% at $72.09/barrel
Brent Crude: +0.3% at $76.04/barrel

Euro/Dollar: $1.0444
Pound/Dollar: $1.2609
Dollar/Yen: 152.08

Dow Jones: Flat at 44,556.34
FTSE 100: Flat at 8,766.73

Investors brace for further developments on trade tensions, AI sector volatility, and geopolitical risks.