Asia Stocks Dip on Trump Tariffs and Tech Losses; Japan Rises on Softer CPI

Most Asian stocks fell on Friday as Trump’s new tariffs triggered sharp losses in pharmaceutical shares, while declines in technology stocks added more pressure. Japanese stocks bucked the trend, gaining slightly after softer inflation data cooled expectations of an imminent Bank of Japan rate hike.

Pharma Stocks Lead Declines After Trump Tariffs

South Korea’s KOSPI was the region’s worst performer, sliding 2.1%, while Hong Kong’s Hang Seng dropped 0.8%. China’s CSI 300 and Shanghai Composite indices fell between 0.3% and 0.5%.

Trump announced a sweeping 100% tariff on all branded and patented pharmaceutical imports, effective October 1. The move is expected to hurt Asian pharma exporters heavily reliant on the U.S. market. Companies building U.S. factories will be exempt.

Major movers included Samsung Biologics and WuXi Biologics, which fell between 1.7% and 4%. Japan’s Daiichi Sankyo dropped 1.9%, while India’s Sun Pharma and Dr. Reddy’s slipped 0.6% and 2.4%, respectively. India’s generic drugmakers appeared less affected, as generics were excluded from the new tariffs.

Tech Stocks Drop on AI Concerns and Chip Policy Reports

Losses in tech shares mirrored Wall Street’s decline overnight. AI-related stocks were hit hardest amid concerns over a bubble in the sector.

Asian chipmakers extended losses after the Wall Street Journal reported that Trump’s administration was preparing a policy to reduce U.S. reliance on chip imports, pushing for more domestic production. The feasibility of such a plan remains uncertain due to high costs and logistical challenges.

South Korea’s SK Hynix and Samsung Electronics tumbled between 3% and 6%, while Taiwan’s TSMC fell nearly 2%. In Hong Kong, Xiaomi, Alibaba, and Tencent all retreated after earlier gains, with Xiaomi sliding 5% despite a price target upgrade from Goldman Sachs.

Japan Stocks Gain on Cooling Inflation

Japan’s Nikkei 225 and TOPIX rose 0.1% and 0.6%, respectively. Gains were supported by a softer Tokyo CPI reading, which suggested inflation pressures were easing.

The data reduced expectations of further BOJ rate hikes, weakening the yen but boosting export-focused stocks. Japanese indexes remain near record highs, supported by speculation that the BOJ will maintain an accommodative stance.

Broader Asia Market Moves

Elsewhere in the region, Australia’s ASX 200 rose 0.1% and Singapore’s Straits Times Index gained 0.3%. In contrast, India’s Nifty 50 fell 0.4%, weighed down by pharma losses and renewed uncertainty over U.S. trade talks after Washington imposed 50% tariffs on Indian oil imports from Russia.