Asia-Pacific stocks tumbled on Thursday, particularly in Japan, in the wake of President Trump's announcement of extensive 10% import tariffs and higher duties on specific nations. President Trump on Wednesday announced a comprehensive overhaul of U.S. trade policy, instituting a universal 10% tariff on all imported goods, effective April 5, 2025. Meanwhile, Trump imposed an additional 34% tariff on Chinese goods, raising total levies on China to 54%, further clouding the economic outlook. Japan ( NKY:IND ) fell 3.02% to drop below 35,000, while the Topix Index slid 3.3% to 2,560 on Thursday, as Japanese stocks sank to multi-month lows following US President Donald Trump’s sweeping reciprocal tariffs. The Japanese yen surged toward 147 per dollar on Thursday, hitting a three-week-high. The Au Jibun Bank Japan Services PMI recorded 50 in March 2025, improving from the flash estimate of 49.5 but declining from February’s six-month high of 53.7. In response to the new U.S. tariffs, Japan expressed 'serious concerns,' labeled the decision 'extremely regrettable,' and is exploring all counter-measures. They requested an exemption, formed a task force to assess the impact, and raised WTO compliance concerns, while facing a separate 25% car tariff. China ( SHCOMP ) fell 0.21% to around 3,340 while the Shenzhen Component dropped 0.6% to 10,450 on Thursday, with mainland stocks snapping a two-day advance as US President Donald Trump imposed a 34% reciprocal tariff on China, intensifying the trade conflict between the world’s two largest economies, and the offshore yuan depreciated toward 7.32 per dollar on Thursday, touching a one-month low in the earlier session. The Caixin China General Services PMI increased to 51.9 in March 2025, up from 51.4 in the previous month, surpassing market forecasts of 51.6. Separately, the trade dispute between China and the U.S. intensified as Beijing announced plans for "resolute" countermeasures following the Trump administration's imposition of further tariffs, bringing the total to 54% on certain Chinese imports. China's Commerce Ministry called for the U.S. to reverse its unilateral tariffs and pursue dialogue, while simultaneously denouncing the measures as violations of international trade rules and acts of "unilateral bullying." Citigroup warned that the increased tariffs could cut China’s GDP growth by 2.4ppts and shrink export growth by 15.4ppts, adding to concerns over the country’s economic outlook. Traders now await Beijing’s response to Trump’s latest move. Hong Kong ( HSI ) fell 1.84% to 22,933 on Thursday, following a muted close in the previous session. The S&P Global Hong Kong SAR PMI fell to 48.3 in March 2025 from 49.0 in February, marking the second straight month of contraction and the lowest since June 2024. India ( SENSEX ) fell 0.34% to 76,300 in morning trade on Thursday, halting gains from the previous session, following U.S. President Trump's imposition of a 26% reciprocal tariff on India. Australia ( AS51 ) fell 0.95% to close at 7,860 on Thursday, hitting a three-week low during the session. The Australian dollar hovered near $0.63 on Thursday. The Australian trade surplus in February 2025 drastically undershot market predictions, settling at AUD 2.97 billion, well below the anticipated AUD 5.6 billion. This represents the smallest surplus since August 2020, as exports decreased while imports increased, following a revised January surplus of AUD 5.16 billion. The S&P Global Australia Services PMI Business Activity Index rose to 51.6 in March 2025 from 50.8 in February, marking the highest reading in seven months. The S&P Global Australia Services PMI Business Activity Index rose to 51.6 in March 2025 from 50.8 in February, marking the highest reading in seven months. Australia was hit with a 10% tariff on its exports, a move Prime Minister Anthony Albanese condemned as “not the act of a friend,” though he ruled out imposing reciprocal tariffs on the US. In the U.S., on Wednesday, all three major indexes ended higher as traders assessed President Trump's tariff announcement. Trump declared "Liberation Day" with the announcement of comprehensive tariffs aimed at reshaping U.S. trade relationships. U.S. stock futures slumped sharply on Thursday on fears that an escalating trade war could further weaken the already struggling U.S. economy: Dow -2.19%; S&P 500 -3.03%; Nasdaq -3.47%. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan's Mar services PMI revised higher to 50; yen rallies amid trade war concerns Australia's trade surplus shrinks to 2020 low; imports surge, exports fall China's services growth hits 3-month high; yuan falls on Trump's aggressive tariffs China government debuts green sovereign bond offering Japan’s unemployment rate unexpectedly drops to 2.4% in February
