Asia-Pacific Markets Mostly Lower As Wall Street Retreats On U.S.-China Trade Concerns
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By Harshit, Seoul/Tokyo/Singapore

South Korea’s Kospi Retreats After Record High

Asia-Pacific markets traded mostly lower Thursday, following a sharp selloff on Wall Street overnight amid renewed concerns over U.S.-China trade relations.

South Korea’s Kospi index, which earlier touched a record high, fell 0.98% to 3,845.56, while the small-cap Kosdaq dropped 0.81% to 872.03. The Korean won weakened 0.19% to 1,434.70 per U.S. dollar, its lowest level since May.

The declines came after the Bank of Korea kept its benchmark interest rate unchanged at 2.5%, in line with market expectations. Analysts said the decision reflected cautious optimism about domestic growth and inflation but failed to offset investor concerns stemming from global trade tensions.

Trade Fears Shake Markets

Trade worries resurfaced after a Reuters report cited U.S. officials saying the Trump administration is considering restrictions on exports to China made with U.S. software. While the plan may not move forward, the news reignited fears of a renewed trade standoff, which spooked global investors.

“Markets are increasingly sensitive to any potential escalation in U.S.-China trade frictions,” said a Singapore-based strategist. “Even the hint of new restrictions can trigger broad market volatility across the region.”

Regional Market Performances

Japan: The Nikkei 225 closed down 1.35% at 48,641.61, with the Topix index retreating 0.39% to 3,253.78. Shares of SoftBank ended 4.66% lower after announcing plans to issue $2 billion in U.S.-dollar bonds and €750 million in hybrid notes to fund AI investments.
Australia: The ASX/S&P 200 closed largely flat at 9,032.8.
Hong Kong & China: The Hang Seng Index gained 0.57% to 25,927.47, while the CSI 300 in mainland China rose 0.3% to 4,606.34.
India: Following a public holiday, the Nifty 50 increased 0.83%, and the Sensex gained 0.69%, led by positive domestic sentiment.
Wall Street Weakness Weighs on Asia

Overnight, U.S. equities fell as investors digested disappointing earnings from major companies, including Texas Instruments and Netflix.

Dow Jones Industrial Average: -334.33 points, 0.71%, closing at 46,590.41
S&P 500: -0.53%, closing at 6,699.40
Nasdaq Composite: -0.93%, settling at 22,740.40
At session lows, the Dow was down over 400 points, while the S&P 500 and Nasdaq dropped 1.2% and 1.9%, respectively. Analysts noted that the selloff reflected both corporate earnings disappointment and concerns about trade-driven economic uncertainty.

Outlook

Investors remain cautious as markets weigh the impact of potential U.S.-China trade curbs against a backdrop of stable central bank policies and mixed corporate earnings. Analysts suggest that short-term volatility may persist, particularly in export-heavy economies such as South Korea and Japan.

“The Asia-Pacific region is closely tied to U.S. trade developments,” said a Hong Kong-based economist. “Until clarity emerges, equities will likely continue to swing with overnight U.S. market movements.”