(Sharecast News) - Asia-Pacific markets traded mixed on Tuesday as investors weighed renewed tariff threats from US president Donald Trump and concerns that artificial intelligence could disrupt parts of the software sector, while several regional bourses hit fresh records on the back of a chip-driven rally.
As Stephen Innes, managing partner at SPI Asset Management, put it: "Markets are not uneasy-queasy not because they're sick. They are uneasy-queasy because they are being forced to price three separate wars on three separate fronts, each with its own timeline, its own transmission mechanism and its own margin call."
Trump wrote on Truth Social that any country that wants to "play games" with the Supreme Court decision striking down tariffs imposed under the International Emergency Economic Powers Act "will be met with a much higher tariff."
The comments followed Friday's ruling and his subsequent pledge to introduce a 15% global tariff under Section 122 of the 1974 Trade Act.
Innes said the trade backdrop should be viewed in context.
"The bottom line from Goldman [Sachs] is that tariff headlines add friction, not collapse.
"The bigger story is rotation, compositional risk and the market quietly re-pricing which business models deserve a premium in an AI world.
"I agree with the thrust. Tariffs are noise. Rotation is a signal."
Japan in the green, mainland markets rise on return from holiday
In Japan, the Nikkei 225 rose 0.87% to 57,321.09, while the broader Topix added 0.2% to 3,815.98.
Chip-related and industrial names led gains, with Furukawa Electric jumping 15.32%, Murata Manufacturing advancing 10.07% and Fujikura up 10%.
The strength in semiconductor-linked stocks comes against what Innes described as a deeper structural shift.
Chinese markets advanced on return from their nine-day Lunar New Year holiday, as investors assessed the latest policy signals.
The Shanghai Composite climbed 0.87% to 4,117.41 and the Shenzhen Component gained 1.36% to 14,291.56.
Beijing Worldia Diamond Tools surged 19.66%, China Petroleum Engineering Corporation rose 10.13% and Yunnan Coal & Energy added 10.12%.
The People's Bank of China kept its benchmark lending rates unchanged for a ninth straight month in February, leaving the one-year loan prime rate at 3.% and the five-year LPR at 3.5%, in line with expectations.
In Hong Kong, the Hang Seng Index fell 1.82% to 26,590.32, weighed by healthcare and financial stocks.
Sino Biopharmaceutical dropped 6.58%, Hansoh Pharmaceutical Group declined 6.43% and China Life Insurance lost 6.07%.
South Korea's Kospi 100 rallied 2.61% to a record 6,819.45, powered by strength in semiconductor-linked names.
Hanjinkal rose 9.2%, Korea Zinc gained 8.59% and Samsung SDI advanced 7.66%.
Data showed consumer confidence climbed to 112.1 in February, the strongest level since November and well above the neutral 100 mark, supported by robust semiconductor shipments and buoyant equity markets.
While overall sentiment improved, housing expectations weakened, with the home-price outlook index falling 16 points to 108, the lowest since last April, following government measures to cool speculative demand.
The Bank of Korea is widely expected to keep its benchmark rate at 2.5% on Thursday for a sixth straight meeting, after shifting to a more neutral stance in January amid concerns over household debt and currency volatility.
Analysts expect the central bank to lift its 2026 growth forecast to 2% from 1.8%, reflecting stronger AI-driven semiconductor demand.
Markets diverge down under
Australia's S&P/ASX 200 edged down 0.04% to 9,022.30, with ARB Corporation tumbling 13.06%, Austal falling 12.48% and Megaport sliding 7.29%.
Across the Tasman Sea in New Zealand, the S&P/NZX 50 rose 0.83% to 13,532.31, led by Sanford up 3.29%, NZX gaining 2.84% and Stride Property advancing 2.48%.
Dollar mixed, oil prices little changed
In currency markets, the dollar strengthened 0.72% on the yen to trade at JPY 155.77 and rose 0.08% against the Aussie to AUD 1.4184, while easing 0.02% on the Kiwi to change hands at NZD 1.6787.
Oil prices were little changed, with Brent crude futures last down 0.21% on ICE at $71.34 per barrel, and the NYMEX quote for West Texas Intermediate slipping 0.06% to $66.27.
Reporting by Josh White for Sharecast.com.
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