Asia Markets Fall as trump Announces New Tariffs, Approves TikTok Deal
Asian markets broadly declined on September 26, 2025, following a surprise declaration from former President Donald Trump of new tariffs on Chinese goods and simultaneous approval of a deal allowing TikTok to continue operating in the United States. Japan’s Nikkei 225 was flat, while the Topix rose 0.59% to reach a fresh record high. South Korea’s Kospi declined 2.02%,leading losses in Asia,while the small-cap Kosdaq retreated 1.57%. Australia’s S&P/ASX 200 was marginally below the flatline. Hong Kong’s Hang Seng index fell 0.86%, and the mainland Chinese CSI 300 index was flat.
The market reaction reflects investor concerns over escalating trade tensions between the U.S.and China, potentially disrupting global supply chains and economic growth. The approval of the TikTok deal, while removing a significant uncertainty for the social media platform, did little to offset anxieties surrounding the new tariffs. These developments arrive as investors continue to assess economic data, including September inflation figures from Tokyo, which came in softer than expected at 2.5%-compared to expectations of 2.8%-with headline inflation holding steady at 2.5%. Tokyo’s inflation figures are widely considered a leading indicator of nationwide trends.
Overnight in the U.S.,the pullback in tech on Wall Street continued for a third straight day,partly due to rising yields. The 10-year Treasury yield touched 4.2% after data on initial claims for unemployment insurance came in lower than expected. Artificial intelligence play Oracle slid 5%, while Tesla was also among the day’s laggards, falling 4%. The S&P 500 closed down 0.50% at 6,604.72, as did the Nasdaq Composite, which settled at 22,384.70.The Dow Jones Industrial Average shed 0.38%, to finish at 45,947.32.