Most Asian stock markets are ending the week's trading in the red. The pharmaceutical sector suffered the biggest losses after US President Donald Trump announced the introduction of a 100% tariff on imported branded and patented medicines. This was reported by Investing.com, writes UNN.
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Pressure on the markets was also intensified by a decline in the quotes of technology companies, particularly those working in the field of artificial intelligence and microchip production.
New trade barriers, which will come into effect on October 1, threaten key Asian exporters. Shares of Samsung Biologics and WuXi Biologics are losing value, having fallen by 1.7–4%.
Japan's Daiichi Sankyo (–1.9%) also ended up in the red, while India's Sun Pharma and Dr. Reddy's fell by 0.6% and 2.4% respectively. Experts warn that although generics from India are unlikely to fall under the new tariffs, the very fact of customs pressure increases uncertainty in the sector.
The fall of American tech giants triggered a chain reaction in Asia. Companies working with AI and semiconductors were particularly affected, amid fears of a "bubble" in the industry. A Wall Street Journal report about Washington's intention to reduce dependence on chip imports caused shares of South Korean manufacturers SK Hynix and Samsung Electronics to plummet by 3–6%.
Taiwanese giant TSMC also lost about 2%. Chinese and Hong Kong companies Xiaomi, Alibaba, and Tencent also retreated, with Xiaomi's quotes falling by 5%, despite an upgraded forecast from Goldman Sachs.
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Japan stands out from the region. The only exception was the Japanese market: the Nikkei 225 and TOPIX indices rose by 0.1% and 0.6%. The reason is weak inflation figures in Tokyo, which strengthened expectations that the Bank of Japan will not rush to raise rates. This supported export-oriented companies and helped the market stay near record levels.
The KOSPI index in Seoul was the day's outsider, falling by 2.1%. Hong Kong's Hang Seng fell by 0.8%, while China's Shanghai Composite and CSI 300 lost between 0.3% and 0.5%.
At the same time, Australia's ASX 200 and Singapore's Straits Times showed cautious growth (by 0.1% and 0.3%). In India, the Nifty 50 index fell by 0.4% due to increased trade risks in relations with the United States.
Thus, Asian markets found themselves under a double blow – from Washington's tough trade policy and uncertainty surrounding the future development of the technology sector.
Recall
US President Donald Trump announced the introduction of new trade barriers. In particular, from October 1, a 100% tariff will apply to imported medicines if the manufacturer does not have its own production facilities in the United States.