Asian Shares Fall As New US Tariffs Take Effect

(RTTNews) - Asian stocks ended mostly lower on Tuesday as fresh U.S. tariffs came into effect.

While Canada vowed retaliatory 25 percent tariffs on C$155 billion ($107 billion) of U.S. goods, China said it would impose additional tariffs of 10-15 percent on several agricultural goods, including soybeans, corn, dairy and beef.

The dollar index weakened, helping bullion recoup some recent losses. Oil extended steep losses from the previous session following reports that OPEC+ will proceed with a planned output increase in April.

China's Shanghai Composite index ended up 0.22 percent at 3,324.21, reversing an early slide amid expectations that policymakers will announce a huge stimulus package at a key parliamentary meeting on Wednesday.

Hong Kong's Hang Seng index slipped 0.28 percent to 22,941.77, heading into the National People's Congress (NPC) meeting.

The Japanese yen and China's yuan both inched higher after U.S. President Donald Trump said the countries cannot keep reducing value of their currencies.

Japanese markets fell sharply as Trump reaffirmed plans to raise tariffs on Chinese, Mexican and Canadian imports, and data showed the unemployment rate in the country edged up to 2.5 percent in January from 2.4 percent in December.

The Nikkei average tumbled 1.20 percent to 37.331.18 while the broader Topix index closed down 0.71 percent at 2,710.18.

Automakers led losses, with Toyota Motor, Honda and Nissan falling between 1.5 percent and 2.4 percent.

Seoul stocks edged down slightly, with the Kospi average closing 0.15 percent lower at 2,528.92- extending losses for a third straight session and hitting a three-week low.

LG Energy Solution, which has operations in Canada and China, plummeted 5.7 percent.

Nexteel soared over 26 percent and Husteel jumped 14.4 percent after South Korea reportedly expressed interest in a gas pipeline project in Alaska.

Australian shares fell on risk-off sentiment amid tariff uncertainties and ahead of retail sales data for January and the minutes of the RBA's February meeting minutes, both due later in the day.

The benchmark S&P/ASX 200 index dropped 0.58 percent to 8,198.10, with banks, mining and energy stocks leading losses. The broader All Ordinaries index settled 0.68 percent lower at 8,420.90.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index dipped 0.64 percent to 12,469.71 on lingering worries about U.S. tariff measures.

U.S. stocks tumbled overnight, the dollar rallied, and bond yields slumped as President Trump confirmed that 25 percent tariffs on goods from Mexico and Canada would come into effect on Tuesday and that he plans 20 percent tariffs on Chinese imports over fentanyl issues.

Further, Trump said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products, stoking fears of a global trade war. He also flagged new U.S. tariffs for imported farm products.

Recent disappointing data showing weaker housing, cooling manufacturing, rising unemployment claims and a drop in personal spending also spurred fears of an economic slowdown and higher inflation.

The tech-heavy Nasdaq Composite plunged 2.6 percent to a four-month closing low while the S&P 500 shed 1.8 percent and the Dow dipped 1.5 percent.