Asian markets are mostly higher as Wall Street is stuck in trade war doldrums
BANGKOK: Asian shares were mostly higher in thin Good Friday trading following a volatile session on Wall Street, where the Dow Jones Industrial Average fell 1.3% as UnitedHealth shed over a fifth of its value due to a weaker-than-expected profit report.
US stock and bond markets are closed today for Good Friday.
Tokyo’s Nikkei 225 rose 1% to 34,730.28, while South Korea’s Kospi gained 0.5% to 2,483.42. Taiwan’s Taiex advanced 0.3%, with regional tech companies benefiting after Taiwan Semiconductor Manufacturing Co. (TSMC) reported quarterly profits in line with analysts’ expectations. TSMC stated it has not observed a decline in customer activity due to President Donald Trump’s trade war, though uncertainties remain. TSMC’s US-traded stock added 0.1% on Thursday.
The Shanghai Composite Index fell 0.1% to 3,276.73, while Bangkok’s SET rose 0.6%. Many other markets are closed today for Easter-related holidays.
On Thursday, the S&P 500 edged up 0.1%, despite three-quarters of stocks in the index posting gains. The Nasdaq Composite slipped 0.1% following a steadier performance after Wednesday’s sell-off.
Nvidia weighed on the market, falling for a second consecutive day after revealing that new export restrictions on chips to China could impact its first-quarter results by $5.5 billion. The stock dropped 2.9%, becoming the second-largest drag on the S&P 500.
The Dow Jones Industrial Average fell by 527 points, with UnitedHealth Group experiencing a 22.4% drop—its worst since 1998—after cutting its financial forecast for the year. The company attributed the decline to higher-than-expected care costs for Medicare Advantage customers.
Oil and gas stocks rallied as crude oil prices recovered from sharp losses earlier this month. Diamondback Energy rose 5.7%, while Halliburton climbed 5.1%. On Thursday, US benchmark crude oil gained $2.18 to $64.01 per barrel, and Brent crude rose $2.11 to $67.96 per barrel. Oil trading is paused today for the Easter weekend.
President Trump’s trade war continues to create uncertainty. Economists warn that prolonged tariff hikes could lead to a recession. On Thursday, Trump signalled potential tariff reductions through negotiations but criticised Federal Reserve Chair Jerome Powell for suggesting that tariffs could slow the economy and reignite inflation. Trump accused the Fed of being “always TOO LATE AND WRONG” and called for Powell’s removal.
The yield on the 10-year Treasury rose to 4.32% from 4.29% on Wednesday, reversing a decline earlier in the week. Concerns persist that the trade war may undermine confidence in US investments.
US economic reports were mixed. Unemployment claims fell below economists’ expectations, indicating a solid job market. However, manufacturing in the mid-Atlantic region unexpectedly contracted.
In Europe, stock indexes fell on Thursday, with France’s CAC 40 down 0.6% and Germany’s DAX losing 0.5%. The European Central Bank cut its main interest rate, a move anticipated by investors.
Early Friday, the US dollar weakened against the Japanese yen, trading at 142.37 yen compared to 132.44 yen on Thursday. The euro strengthened slightly to $1.1375 from $1.1367.
By RSS/AP
