Asia-Pacific Markets Mixed Amid Trump's Comments on Defense, Venezuela
Asia-Pacific markets displayed a mixed performance on Thursday, reacting to overnight declines on Wall Street driven by rising geopolitical tensions and comments from U.S. President Donald Trump.
U.S. defense stocks fell after Trump stated he "will not permit" defense companies to issue dividends or stock buybacks until they address his concerns about executive compensation and production issues. Additionally, oil prices dropped following Trump's announcement that Venezuela's interim authorities would transfer up to 50 million barrels of crude to the United States, raising fears of increased global supply.
Japan's Nikkei 225 index fell 0.69%, pressured by losses in basic materials and technology shares. SoftBank dropped 4%, and chip equipment maker Tokyo Electron declined 2.9%. The broader Topix index retreated 0.17%.
In contrast, South Korea's Kospi rose 1.27%, and the small-cap Kosdaq edged up 0.1%. Australia's S&P/ASX 200 traded slightly higher in volatile action, though BlueScope Steel shares fell 1.87% after the company rejected a $9 billion takeover bid.
Hong Kong's Hang Seng Index declined 0.97%, led lower by technology and materials stocks. Lenovo Group fell 3.44%, while Kuaishou Technology and Baidu also dropped. Mainland China's CSI 300 index was flat.
U.S. equity futures were little changed in early Asian trading after the S&P 500 and Dow Jones Industrial Average snapped a three-day winning streak overnight. The S&P 500 shed about 0.3%, and the Dow fell roughly 0.9%. The Nasdaq Composite, however, gained nearly 0.2%, buoyed by a 2.4% jump in Alphabet, which surpassed Apple in market capitalization for the first time since 2019.
