(Sharecast News) - Asia-Pacific markets were mixed on Thursday as investors digested the Bank of Korea's latest policy decision and new US tariffs announced by US president Donald Trump overnight.
South Korea's central bank held interest rates steady, while Trump unveiled a 50% tariff on Brazilian imports starting 1 August, and confirmed a similar duty on copper imports would take effect the same day.
"Brazilian assets suffered a decline following Trump's announcement of new tariffs, including a 50% levy on goods from Brazil," commented TickMill market strategy partner Patrick Munnelly.
"Demand in Japan's 20-year government bond auction was below average compared to the last 12 months.
"Copper prices rose after Trump declared that the US would enforce a 50% tariff on copper imports starting 1 August, a decision that poses challenges for producers dependent on this industrial material."
Munnelly noted that copper futures on the London Metal Exchange - the global standard - increased by 0.4%, while contracts on Comex surged by nearly 3%.
"Global producers have swiftly acted to anticipate Trump's impending copper tariffs, including relocating deliveries to Hawaii and Puerto Rico to shorten shipping times.
"Investors who are pessimistic about US assets have opted to sell the dollar as part of the 'Sell America' strategy; the benchmark dollar index has dropped by 8.7% this year."
Markets mixed as Trump's trade turbulence blusters on
In Japan, the Nikkei 225 fell 0.44% to 39,646.36, while the broader Topix lost 0.56% to 2,812.34.
Major decliners in Tokyo included Nikon, down 5.27%, Omron, which slid 5.17%, and Tokyo Electric Power, off 5.07%.
Chinese equities advanced, with the Shanghai Composite rising 0.48% to 3,509.68 and the Shenzhen Component up 0.47% at 10,631.13.
Gains in Shanghai were led by China Fortune Land Development, which surged 10.22%, Chongqing Construction Engineering Group, up 10.12%, and Beijing Jingyuntong Technology, which added 10.03%.
Hong Kong's Hang Seng Index climbed 0.57% to 24,028.37.
ZTO Express Cayman gained 7.36%, Longfor Properties rose 7.05%, and Sunny Optical Technology Group advanced 6.12%.
In South Korea, the Kospi 100 outperformed with a 1.53% gain to 3,198.62 following the central bank's decision.
LG Innotek rose 6.26%, Hanjinkal gained 6.12%, and Samsung Biologics climbed 6.09%.
Australia's S&P/ASX 200 added 0.59% to 8,589.20, boosted by a 14.14% jump in Platinum Asset Management.
Mesoblast rose 4.44% and Cromwell Property Group gained 4.29%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 edged down 0.07% to 12,760.20.
Travel software firm Serko led losses, down 4%, while casino operator SkyCity Entertainment Group dropped 3.96% and Eroad fell 3.55%.
In currency markets, the dollar was last down 0.13% on the yen to trade at JPY 146.14, as it slipped 0.44% against the Aussie to AUD 1.5235, and dropped 0.38% on the Kiwi to change hands at NZD 1.6603.
Oil prices also declined, with Brent crude futures last down 0.4% on ICE at $69.91 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.54% to $68.01.
Bank of Korea holds interest rates, Trump announces copper tariffs
At the top of the regional agenda was South Korea's central bank, which kept its benchmark interest rate unchanged at 2.5% on Thursday, citing the need to monitor surging property prices and rising household debt.
The Bank of Korea pointed to a "significant acceleration in housing prices in Seoul and its surrounding areas" and continued growth in household borrowing.
Its decision followed a rate cut in May, implemented amid political unrest and growing concerns over US trade tariffs on South Korean auto and steel exports.
Recent data from Goldman Sachs showed Seoul home prices rose more than 19% in June on an annualised basis, prompting regulatory action to rein in lending.
While South Korea's economy contracted 0.2% in the first quarter due to sluggish exports and weak construction activity, the central bank was prioritising financial stability over growth stimulus.
In the US, president Donald Trump confirmed that a 50% tariff on copper imports would take effect on 1 August.
Trump said the measure followed a national security review, citing copper's critical role in defence and high-tech industries.
"Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons [sic]," he posted on Truth Social, describing it as the second most used material by the Department of Defense.
Reporting by Josh White for Sharecast.com.
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