Asia report: Markets mixed as US trade tensions ease
By Josh White
Date: Tuesday 29 Apr 2025
(Sharecast News) - Asia-Pacific markets ended mixed on Tuesday, mirroring cautious sentiment from Wall Street after the US administration signaled plans to ease the impact of auto tariffs.
Trading was subdued in some areas, with Japan's markets closed for the Shōwa Day holiday.
"Asian stocks reached their highest levels in a month, fuelled by hopes that Trump might ease the effects of his auto tariffs, which could lead to a reduction in trade tensions," said TickMill market strategy partner Patrick Munnelly.
"The regional MSCI index saw a 0.4% increase, and S&P 500 futures also rose after a White House official stated that imported vehicles would be exempt from extra tariffs on aluminium and steel. Hyundai was at the forefront of gains among South Korean car manufacturers.
"A Japanese holiday has led to no Treasury trading during Asian hours, following a rally in the US session that reduced the 10-year yield to 4.21% from a peak of 4.30%."
Markets mixed as Sydney leads the risers
In China, the Shanghai Composite slipped 0.05% to 3,286.65, while the Shenzhen Component edged down 0.06% to 9,849.80.
Losses in small-cap stocks weighed heavily, with Jiangsu Wuzhong, Jiangsu Hongtian Tech, and Ningbo United Group all falling by the 10% daily limit.
Hong Kong's Hang Seng Index gained 0.16%, lifted by strong performances in healthcare and auto stocks.
Alibaba Health Information Technology surged 7.16%, while WuXi AppTec H and Geely Automobile rose 4.21% and 4.18%, respectively.
South Korea's Kospi 100 advanced 0.54% to 2,542.84, buoyed by strong gains in industrial and consumer sectors.
LS Electric jumped 8.32%, LG Household & Healthcare climbed 6.9%, and Doosan Bobcat rose 5.54%.
Australia led regional gains, with the S&P/ASX 200 up 0.92% to 8,070.60.
Mining and financial stocks outperformed, as Mineral Resources soared 13.15%, Credit Corp Group gained 6.26%, and Pilbara Minerals rose 6.21%.
New Zealand's S&P/NZX 50 underperformed, falling 0.61% to 12,025.45.
Key drags included Auckland Airport, Scales, and Summerset Group, which declined between 2.56% and 2.87%.
In currency markets, the dollar strengthened against regional peers.
The yen fell 0.47% to 142.72 per dollar, the Australian dollar weakened 0.29% to 1.5594, and the New Zealand dollar slipped 0.32% to 1.6780.
Oil prices declined, with Brent crude down 1.43% at $64.92 and West Texas Intermediate off 1.27% to $61.26.
More Chinese exporters shifting from US market
In geopolitical news, it emerged that a growing number of Chinese exporters are shifting away from the US market amid escalating trade tensions, according to a new survey by the China Council for the Promotion of International Trade (CCPIT).
Nearly half of the 1,100 exporters surveyed indicated plans to reduce their exposure to the US, citing concerns that high tariffs could bring bilateral trade to a standstill.
The CCPIT said about 75% of the surveyed firms intend to expand into emerging markets to offset declining US orders.
Many are also redirecting sales to the domestic market or pursuing new international customers to reduce their reliance on any single trading partner.
The state-backed trade body highlighted the challenges exporters face in navigating "frequently-shifting tariff policies," which have made long-term planning increasingly difficult.
Despite these tensions, the CCPIT reiterated China's openness to foreign businesses, including American firms, and urged the US to resolve trade disputes through dialogue rather than punitive measures.
Reporting by Josh White for Sharecast.com.
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