US and European Markets Rally While Asia Faces Tariff Shock

US and European markets experienced gains on Friday, while Asian markets faced challenges following the announcement of new tariffs by US President Donald Trump. The Dow Jones Industrial Average rose by 0.65%, the S&P 500 increased by 0.59%, and the Nasdaq Composite climbed by 0.44%. This rally ended a three-day losing streak for US markets, although they remained down for the week overall.

The pan-European Stoxx 600 index saw a 0.8% increase on the same day, recovering from three-week lows, primarily driven by gains in financial and industrial sectors. European shares benefitted from positive investor sentiment, marking a robust end to the trading week.

In contrast, Asian markets struggled as Trump’s tariff announcement impacted investor confidence. New tariffs were set to affect furniture, heavy trucks, and pharmaceuticals, leading to declines in shares of Asian pharmaceutical companies. Japan’s Nikkei 225 index remained flat, while South Korea’s Kospi dropped by 2.02%, the largest loss in the region. The Hang Seng index in Hong Kong fell by 0.86%, and the mainland Chinese CSI 300 index also remained flat.

The S&P/NZX 50 index in New Zealand faced a decline of 0.32% as a concerning consumer confidence report was released. Despite the overall downturn, some companies reported positive results. Hallenstein Glasson announced sales of $470.7 million for the year ending August 1, reflecting an increase of 8.1% compared to the previous year, with a net profit after tax of $39.5 million, a rise of 14.4%.

Several stocks in New Zealand exhibited strong performances. PaySauce shares surged by 16.02% after announcing its entry into the Australian market, where dairy farmers in Victoria began using its payroll solution in a pilot phase ahead of a formal launch in 2026. Other notable gainers included New Talisman Gold Mines, which rose by 6.90%, Being AI at 5.48%, New Zealand King Salmon advancing by 5%, and Burger Fuel Group, which increased by 4.76%.

Conversely, some companies faced declines. Eroad fell by 3.85%, and Infratil dropped by 3.56% following reports of a potential investor losing interest in AI and data centre ventures. Other decliners included Rua Bioscience down by 2.70%, Serko falling by 2.63%, and Smart Global Property Units ETF losing 2.49%.

In Australia, the S&P/ASX 200 index managed a slight gain of 0.17%. The rise was led by Iperionx, an American titanium metal and critical materials company, which gained 6.06% following a strengthening relationship with the US Department of Defense. Additionally, gaming company Tabcorp rose by 4.62% after receiving an upgrade from analysts.

On the global stage, Trump continued to call for the dismissal of Lisa Monaco, Microsoft’s President of Global Affairs, labeling her a “menace to US National Security.” In a post on social media platform Truth Social, Trump highlighted concerns regarding Monaco’s prior role as Deputy Attorney General during the Biden administration and referenced the government’s decision to strip her of security clearances.

In the UK, the government pledged a $2 billion loan guarantee for Jaguar Land Rover to support its supply chain following a cyber attack that halted production for nearly a month. This support is critical, as small suppliers reported they had only one week left of funding. Jaguar Land Rover, owned by India’s Tata Motors, operates three factories in the UK, producing approximately 1,000 cars per day and employing staff in Birmingham and Liverpool.

Looking ahead, today’s edition of The Post features articles highlighting various developments, including Wellington trap-maker Goodnature going global, anticipated reforms in the electricity sector to prevent future crises, and Australian miner Manuka Resources preparing to list on the NZX. Additionally, Metro Performance Glass will hold its annual general meeting today, while dairy processor Synlait is set to release its annual financial results.