Asia Slips on Trump Tariffs, but Singapore's STI Shows Stability

US President Donald Trump's tariffs labeled "Liberation Day" are severely impacting Asian markets as investors adopt a risk-off mode. The majority of markets in Asia dropped sharply following Trump’s announcement early Thursday morning of a standard 10 percent tariff on all nations, along with extra tailored tariffs for certain countries. 

However, Singapore’s Straits Times Index was an outlier, declining just 0.3 percent by the end. Since the country does not apply tariffs on US goods as per the US-Singapore Free Trade Agreement, it was only subjected to the standard 10 percent rate. 

Japan's Nikkei 225, having dropped over 14.3 percent from its January high, sank by approximately 4 percent soon after the market commenced. It finished 2.8 percent lower. Hong Kong’s Hang Seng Index closed down by 1.5 percent. South Korea’s Kospi Composite Index fell 2.3 percent in morning trading before ending the day down 0.8 percent. 

Vietnam's main index fell by 6.7 percent, whereas Malaysia's FTSE Bursa KLCI decreased by 0.5 percent. Australia, which is subjected only to the baseline tariff rate, experienced the ASX 200 decrease by nearly 1.9 percent before bouncing back to a 1 percent drop by the end of the day. 

apan has incurred an extra tailored tariff rate of 24 percent, whereas South Korea has faced a 25 percent tariff rate. China will encounter an extra 34 percent in addition to the tariffs placed earlier this year. Markets in the area faced significant declines in the days prior to the announcement, indicating widespread apprehension regarding the effects of the upcoming tariffs.