Asian Shares Mostly Lower As US Tariffs On Steel, Aluminum Imports Take Effect

(RTTNews) - Asian stocks ended mostly lower on Wednesday despite U.S. President playing down fears of a recession and Ukraine endorsing a U.S. proposal for a 30-day ceasefire with Russia.

Tariff uncertainties kept investors on edge as Trump's increased tariffs on all U.S. steel and aluminum imports took effect and the European Union said it will impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.

Meanwhile, Trump reversed course on a pledge to double tariffs on steel and aluminum from Canada to 50 percent, minutes after the Canadian province of Ontario backed off its plans for a 25 percent surcharge on electricity.

The dollar weakened against its major peers ahead of the release of key U.S. consumer inflation reading later in the day. Gold was marginally lower while oil prices edged higher on dollar weakness.

China's Shanghai Composite index slid 0.23 percent to 3,371.92 after a choppy session. Hong Kong's Hang Seng index fell 0.76 percent to 23,600.31, extending declines for a fourth day.

Japanese shares ended flat after a choppy session as Bank of Japan Governor Kazuo Ueda said recent rises in bond yields were a natural reflection of market expectations of future interest rate hikes.

Additionally, Japan's annual wholesale inflation hit 4.0 percent in February, data showed on Wednesday, keeping BoJ rate-hike bets alive.

The Nikkei average finished marginally higher at 36,819.09 while the broader Topix index jumped 0.91 percent to close at 2,694.91.

Nissan Motor shares rose 0.6 percent after CEO Makoto Uchida announced his resignation, paving the way for Ivan Espinosa to take over on April 1.

Seoul shares rallied, with the Kospi average climbing 1.47 percent to 2,574.82 led by semiconductor and battery stocks. LG Energy Solution and Samsung SDI both rose around 2 percent.

Australian markets tumbled as U.S. tariffs on steel and aluminum imports came into effect, with no exemptions for Australia.

Prime Minister Anthony Albanese has called the decision by U.S. as "unprovoked, unfriendly and entirely unjustified", but said he won't impose retaliatory tariffs on the U.S.

The benchmark S&P/ASX 200 fell 1.32 percent to 7,786.20, hitting a new six-month low. The broader All Ordinaries index dropped 1.24 percent to 8,002.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 1.30 percent to 12,249.55.

U.S. stocks fell sharply overnight after a highly volatile session, adding to the biggest selloff in months, as tariff-related worries overshadowed signs of resilience in the labor market and news of progress toward a ceasefire between Russia and Ukraine.

The Dow lost 1.1 percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite slipped 0.2 percent.