ASIA STOCKS: Asian Equities Hit Hard On Tariff Headlines

Asian equities lower across the board today following Tariff headlines. Although it has been reported that China is planning to open discussions with Trump to avoid further escalation.

• Japan's Nikkei 225 and Topix declined 2.8% and 2.5%, respectively, as US tariffs heightened global growth concerns. Tech stocks were particularly weak, with Tokyo Electron, Nintendo, and KDDI among those under pressure ahead of earnings. However, Hitachi (+1.1%) bucked the trend after reporting stronger-than-expected Q3 results and raising its full-year profit forecast. Komatsu dropped 7.2%, the most since August, after mixed Q3 earnings signaled uncertain global demand.
• South Korea's Kospi Index fell 3%, as semiconductor stocks were hit hard. Samsung Electronics and SK Hynix both declined as AI-related stocks faced profit-taking. Investors are also concerned that US tariffs will hurt Korea’s export-driven economy, particularly in technology and automotive sectors.
• Taiwan's Taiex Index is 3.8% lower, with TSMC leading declines as the AI sector saw a broad selloff. Delta Electronics’ parent company fell 9.8% in Taiwan, its largest drop since August 5, amid worries about its exposure to Mexico, where it has significant manufacturing operations. AI hardware names also suffered, with Wiwynn, Quanta, and Asia Vital hitting limit down on concerns that US tariffs could disrupt supply chains. PC makers like Asus (+5.4%) and Acer (+2.6%) outperformed, as they are expected to benefit from increased AI adoption.
• In Hong Kong the Hang Seng Index fell is 0.7%, paring deeper losses after reports that China is planning to open discussions with Trump to avoid further tariff escalation. Offshore yuan stabilized, signaling potential intervention. Alibaba surged 5%, its highest since Nov. 12, after revealing an AI model that outperformed Meta’s Llama and DeepSeek V3. Macau casino stocks declined after January gaming revenue missed estimates, but analysts remain focused on Lunar New Year performance, which could still show strength. CK Hutchison (-2.6%) hit its lowest since July 11, with further pressure on shipping and infrastructure stocks tied to the Panama Canal, after the US Secretary of State urged Panama to remove Chinese companies near key trade routes. Mainland markets remain closed for the Lunar New Year and will reopen on Wednesday.
• Australia's ASX 200 fell 1.9%, with mining stocks underperforming amid concerns that US tariffs on Canada, Mexico, and China could dampen global economic growth and weaken commodity demand. Westgold Resources plunged 14% after cutting its gold production forecast. In New Zealand, the NZX 50 dropped 1.4%, led by Fisher & Paykel Healthcare, which saw its biggest one-day decline since 2020 after warning of potential cost increases due to tariffs.