- Asian markets mostly lower despite Wall Street gains
- U.S. inflation data offers mixed signals for Federal Reserve
- AI stocks rebound while consumer goods face tariff pressures
- European and Canadian retaliatory measures rattle global markets
- Oil prices stabilize amid ongoing economic uncertainty
Asian equities faced downward pressure on Thursday, with major indices in Hong Kong and Shanghai declining 0.7% and 0.4% respectively. This market anxiety persists despite Wall Street’s partial recovery fueled by cooler-than-expected U.S. inflation figures. Analysts attribute the divergence to growing concerns about retaliatory tariffs and their potential to disrupt global supply chains.
The U.S. Consumer Price Index (CPI) report showed a modest 0.2% month-over-month increase, providing temporary relief to investors. However, this positive development was overshadowed by escalating trade tensions, particularly affecting industries like automotive manufacturing and spirits production. Harley-Davidson shares plummeted 5.7% following new EU tariffs targeting American motorcycles, while Jack Daniel’s producer Brown-Forman saw a 5.1% drop.
Technology sectors displayed surprising resilience, with Nvidia surging 6.4% after recent losses. This AI-driven recovery suggests investors remain confident in long-term tech growth despite short-term market volatility. GE Vernova, a key player in power infrastructure for data centers, gained 5.1%, highlighting shifting priorities in industrial investments.
A regional analysis reveals stark contrasts: Tokyo’s Nikkei 225 rose 0.5% on export sector strength, while India’s Sensex edged up 0.1% on domestic consumption trends. This divergence underscores the complex interplay between global trade policies and local economic fundamentals. Hong Kong’s 0.7% decline reflects its unique vulnerability as a financial hub bridging East-West commerce.
Market strategists warn that tariff-related uncertainty could persist through Q3, potentially shaving 0.5-1.2% off global GDP growth projections. The aviation sector already shows strain, with Delta Air Lines reporting weakened demand for last-minute bookings amid consumer caution. However, some bright spots emerge – Casey’s General Stores jumped 6.2% on strong convenience store sales, demonstrating localized economic resilience.
