This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets traded lower Tuesday after Wall Street fell overnight as tariff threats by U.S. President Donald Trump stoked a risk-off mood, while investors also assessed the rate decision by the Bank of Korea.
Japan’s Nikkei 225 led losses in the region, down more than 1% to close at 38,237.79, while the Topix fell 0.43% to close at 2,724.7. Japan’s major trading houses, however, logged sharp gains on Warren Buffett’s plans to increase Berkshire Hathaway’s stake in the conglomerates.
South Korea’s Kospi traded 0.57% lower to 2,630.29 while the small-cap Kosdaq fell 0.50% to 769.43.
South Korea’s central bank expectedly cut rates to 2.75% from 3%, as it strives to stimulate a slowing economy. The Korean won marginally weakened to 1,430.1 against the dollar.
South Korea has been facing political uncertainty, stemming from the impeachment proceedings against President Yoon Suk Yeol after his short-lived imposition of martial law in December.
Hong Kong’s Hang Seng Index fell 1.36% in its last hour of trade while mainland China’s CSI 300 dipped 1.11% to 3,925.65 amid escalating trade tensions with the U.S. The Hang Seng Tech index pared losses to trade flat.
Australia’s S&P/ASX 200 fell 0.68% to close at 8,251.9.
Overnight in the U.S., the markets failed to spring back from last Friday’s sell-off. The broad market index lost 0.5%, closing at 5,983.25. The Nasdaq Composite fell 1.21%, ending the session at 19,286.92. The Dow Jones Industrial Average inched up 33.19 points, or 0.08%, to close at 43,461.21.
Ongoing concerns about U.S. President Donald Trump’s trade war with key trading partners continued to weigh on market sentiment. Trump on Monday declared that tariffs on Canada and Mexico will be implemented once the one-month delay period concludes next week.
—CNBC’s Hakyung Kim and Jesse Pound contributed to this report.
Shares of Japanese trading houses climb after Warren Buffett commits to increase ownership
Shares of Japanese trading houses in Berkshire Hathaway’s portfolio rose after Warren Buffett declared plans to commit to his company’s Japanese investments for the long term.
Mitsubishi shares rose 8%, while Itochu climbed 6.76%. Marubeni and Sumitomo climbed 7.01% and 6.07% respectively. Mitsui inched up 0.75%.
Berkshire Hathaway reached an agreement with the companies to own more than 10% of each company’s shares — which was a initially a “ceiling,” Buffett said. “Over time, you will likely see Berkshire’s ownership of all five increase somewhat,” he added.
—Lee Ying Shan
Bank of Korea cuts rates to lowest since August 2022 as the country struggles with growth slowdown
South Korea’s central bank cut rates by 25 basis points Tuesday to their lowest since August 2022, as it strives to stimulate a slowing economy.
The Bank of Korea cut rates to 2.75% from 3%, in line with expectations from economists polled by Reuters, trimming rates for the third time in four meetings.
The decision comes as South Korea continues to grapple with political uncertainty over the impeachment trial of President Yoon Suk Yeol.
The country’s Constitutional Court will convene for the final hearing of Yoon impeachment trial Tuesday, according to domestic media.
Read the full story here.
—Lim Hui Jie
Nissan shares plunge as automaker deals with the fallout of failed merger talks, Trump tariff threats
Shares of Japanese automaker Nissan declined sharply Tuesday as it grapples with the fallout of failed merger talks with Honda{=null}, while they were also pressured by President Donald Trump’s plans to go ahead with tariffs on Canada and Mexico.
Nissan shares slipped as much as 9%, before paring losses to trade 7.72% lower.
On a percentage of sales basis, Nissan Motor is the second most exposed to tariffs on Mexico, right after German automaker Volkswagen, according to data by S&P Global Mobility.
— Lee Ying Shan
S&P 500, Nasdaq finish lower Monday
The S&P 500 and Nasdaq Composite both ended Monday in the red.
The broad market index slipped 0.5%. The tech-heavy Nasdaq declined 1.2% and slipped into negative territory for the year.
Meanwhile, the Dow Jones Industrial Average added 33.19 points, or 0.08%.
— Hakyung Kim
Warning: Stagflation risks are growing, according to Bank of America economists
“[T]he ‘stagflation’ narrative is gaining steam,” thanks to “growth-negative policies” such as deportations of undocumented workers, government job cuts, threats of higher tariffs and “a growing risk that fiscal stimulus will be modest and delayed,” owing to Republicans’ narrow majority in the House of Representatives, according to economists at Bank of America.
Only a very benign picture of stagflation is likely to emerge, economists led by Aditya Bhave wrote Monday. “In our forecast, growth slows but remains at or above trend this year (in the low 2s). Inflation picks up by a few tenths, mainly because of tariffs, but stays below 3%,” they said.
If economic growth lags or inflation accelerates too much, “Republicans are likely to dial back on tariffs, spending cuts and immigration restrictions,” BofA wrote. As a result, “risk assets should continue to perform well.”
— Scott Schnipper
