Asian Markets on Edge as Investors Await U.S. Tariff Announcement

Asian stock markets wavered on Wednesday, while gold—considered a safe-haven asset—remained near record highs. Investors worldwide are anxiously awaiting details of U.S. President Donald Trump’s latest tariff plans, fearing an escalation in the ongoing global trade war.

The White House is set to announce a fresh round of reciprocal tariffs at 2000 GMT, expected to take effect immediately.

The uncertainty has kept financial markets on edge, as previous tariff hikes on aluminum, steel, automobiles, and a broad range of Chinese goods have already sent ripples through the global economy. Many fear that a full-scale trade war could significantly slow global growth.

European markets indicated a muted opening, with STOXX 50 futures slipping 0.27% and Germany’s DAX futures down 0.24%. In Asia, stock movements were erratic after a volatile session in the U.S.

Japan’s Nikkei (.N225) rebounded slightly, gaining 0.25% after earlier touching its lowest level since September. Meanwhile, South Korea’s KOSPI (.KS11) dropped 0.6%. China’s blue-chip CSI300 index edged up 0.14%, while Hong Kong’s Hang Seng index remained largely unchanged.

On Wall Street, the S&P 500 (.SPX) and Nasdaq (.IXIC) managed to close higher after a shaky session, while the Dow Jones Industrial Average (.DJI) ended slightly lower.

Market analysts believe that nervousness remains the dominant sentiment. “Investors are hoping for some clarity and possibly the beginning of negotiations,” said Ben Bennett, Asia-Pacific investment strategist at Legal & General Investment Management.

“However, existing tariffs are already dampening business sentiment, and this could translate into weaker global economic activity in the coming months.”

Adding to the uncertainty, Trump has referred to April 2 as ‘Liberation Day,’ though investors remain skeptical about any significant relief from tariff-related concerns. “If other nations retaliate, Trump could escalate further, and this possibility will likely keep markets on edge,” noted Vasu Menon, managing director of investment strategy at OCBC.

With trade tensions running high, investors are bracing for potential retaliatory measures from affected countries. Whether the U.S. administration moves toward de-escalation or further intensifies the dispute remains to be seen, but for now, market volatility is expected to persist.