Sunday, 5th April 2026
Khabor Wala Desk
Published: 7th August 2025, 2:24 PM
Asian equities climbed on Thursday as investors brushed aside US President Donald Trump’s threat to impose 100 percent tariffs on semiconductors. Optimism remained strong that the Federal Reserve would cut interest rates next month, supporting market sentiment.
| Market/Company | Movement | Notes |
|---|---|---|
| Taiwan (TSMC) | +5% | Surge led by Taiwan Semiconductor Manufacturing Company (TSMC), exempt from tariffs due to US factories. |
| South Korea (Samsung) | +2% | Gains amid strong US investment plans. |
| South Korea (SK hynix) | +1% | Also rose alongside Samsung. |
| Japan (Tokyo Electron) | -2% | Declined despite tariff news. |
| Japan (Renesas) | -3.8% | Experienced notable losses. |
| Japan (Disco Corporation) | -1.8% | Precision tools maker retreated. |
| Sony | +4.1% | Surged after raising annual profit forecasts, citing strong gaming business and limited tariff impact. |
Trump announced a sweeping new 100 percent tariff on chips and semiconductors but offered no timeline for its implementation. However, he clarified that companies such as Apple, which manufacture in the United States or have committed to do so, would be exempt.
Liu Chin-ching, head of Taiwan’s National Development Council, confirmed TSMC’s exemption due to its US-based manufacturing facilities. TSMC is ramping up production in Arizona, pledging up to $165 billion investment—the largest foreign direct investment in US history.
Samsung and SK hynix, also heavily investing in the US, enjoyed market gains despite the tariff threats.
Apple bolstered sentiment further by announcing an additional $100 billion investment in the US, raising its total commitment to $600 billion over four years.
Morningstar analyst Phelix Lee noted the 100 percent tariff threat fits Trump’s pattern of negotiating down from high initial demands, suggesting the final tariffs could be similar to other “reciprocal” tariffs aimed at limiting inflation in consumer goods.
Asian markets extended gains following a strong session on Wall Street, where Apple and Amazon jumped over 4 percent.
Markets in Tokyo, Hong Kong, Singapore, Seoul, Bangkok, Jakarta, and Wellington advanced, with Taipei leading due to TSMC’s rally.
Shanghai ended positively after data showed Chinese exports rose more than expected, buoyed by shipments to the EU and Southeast Asia, which offset declines to the US. Imports also increased, aiding China’s economic recovery efforts.
Conversely, Mumbai, Sydney, Manila, London, and Frankfurt slipped slightly, while Paris edged up.
Oil prices rose after Trump threatened penalties on countries importing Russian oil, following the increased tariff on India.
Traders continue to monitor the situation in Ukraine, with Trump indicating a potential meeting with Vladimir Putin, following talks between US and Russian officials.
| Asset | Movement (approx.) | Price / Index Level |
|---|---|---|
| Nikkei 225 (Tokyo) | +0.7% (close) | 41,059.15 |
| Hang Seng Index (Hong Kong) | +0.8% | 25,105.32 |
| Shanghai Composite | +0.2% (close) | 3,639.67 |
| FTSE 100 (London) | -0.2% | 9,142.27 |
| Euro/USD | Up | 1.1678 |
| Pound/USD | Up | 1.3375 |
| Dollar/Yen | Down | 146.86 |
| Euro/Pound | Up | 87.31 pence |
| WTI Crude Oil | +0.6% | $64.73 per barrel |
| Brent Crude Oil | +0.5% | $67.25 per barrel |
| Dow Jones (New York) | +0.2% (close) | 44,193.12 |
Markets remain attentive to Federal Reserve policy, trade developments, and geopolitical tensions, as these factors continue to influence global investor confidence.
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