US and European Markets Rally as Asia Faces Tariff Shock

In trading on Friday, stock markets in the United States and Europe saw gains, while Asian markets faced challenges due to new tariff announcements from the United States. The Dow Jones Industrial Average rose by 0.65%, the S&P 500 increased by 0.59%, and the tech-focused Nasdaq climbed 0.44%. This uptick ended a three-day losing streak for US markets, although they concluded the week lower overall.

The pan-European Stoxx 600 index also saw a positive performance, rising by 0.8%. European shares rebounded from three-week lows, buoyed by increases in financial and industrial sectors.

Impact of Tariff Announcements on Asian Markets

Conversely, Asian stock markets struggled following an announcement by US President Donald Trump. He revealed that new tariffs would be imposed on various products, including furniture, heavy trucks, and pharmaceuticals, with a notable 100% tariff on pharmaceutical imports. This news led to declines in shares of Asian pharmaceutical companies.

In Japan, the Nikkei 225 index remained flat, while South Korea’s Kospi fell by 2.02%, marking the steepest drop in the region. Hong Kong’s Hang Seng index decreased by 0.86%, and the mainland Chinese CSI 300 index also showed no significant movement. The S&P/NZX50 in New Zealand dropped by 0.32%, coinciding with the release of a concerning consumer confidence report.

Despite the overall negative sentiment in Asia, some companies reported positive news. Hallenstein Glasson announced an annual revenue of $470.7 million for the year ending August 1, reflecting an increase of 8.1% compared to the previous year. The company also reported a net profit after tax of $39.5 million, a rise of 14.4%.

Company Performances and Market Reactions

Among notable gainers, PaySauce experienced a surge of 16.02% in its share price after announcing its entry into the Australian market, where dairy farmers in Victoria began using its payroll solution in a pilot program ahead of a formal launch planned for 2026. Other companies that saw increases included New Talisman Gold Mines at 6.90%, Being AI at 5.48%, New Zealand King Salmon at 5%, and Burger Fuel Group, which rose 4.76% post a contentious shareholder meeting.

On the decline, Eroad fell by 3.85%, and Infratil dropped 3.56%, driven by concerns regarding an investor’s interest in AI and data centre investments in the US. Other decliners included Rua Bioscience at 2.70%, Serko down 2.63%, and the Smart Global Property Units ETF, which lost 2.49%.

In Australia, the S&P/ASX 200 saw a slight gain of 0.17%, largely influenced by Iperionx, an American company specializing in titanium metal and critical materials, which increased by 6.06% due to strengthening ties with the US Department of Defense. Additionally, gaming company Tabcorp rose by 4.62% following an upgrade from analysts.

In international developments, President Trump criticized Lisa Monaco, Microsoft’s president of global affairs, calling for her dismissal. He described her as “a menace to US National Security,” citing her previous role as deputy attorney general during the Biden administration. Monaco has reportedly lost her security clearances and access to National Security Intelligence.

The UK government has pledged a $2 billion loan guarantee for Jaguar Land Rover to support its supply chain following a cyberattack that halted production for nearly a month. The assistance comes as reports indicate that some suppliers were close to financial insolvency. The company, owned by India’s Tata Motors, operates three factories in the UK, producing approximately 1,000 cars daily, employing many in Birmingham and Liverpool.

Today’s news also features insights from Alka Prasad on Wellington-based trap-maker Goodnature expanding globally, while Tom Pullar-Strecker reports on anticipated reforms in the electricity sector aimed at preventing future crises. Manuka Resources, an Australian mining company, is set to list on the NZX, and Aimee Shaw profiles Retrobowl, an entertainment business in Invercargill, as part of a weekly series showcasing innovative small businesses.

Additionally, Metro Performance Glass will hold its annual general meeting today, while dairy processor Synlait is expected to release its annual financial results.