As uncertainty took over the Asian stock market, the U.S. dollar traded near a 2.5-week high on Wednesday, and copper hit an all-time high after U.S. President Donald Trump announced that he would impose a 50 percent tariff on the metal. Trump added that tariffs on semiconductors and pharmaceuticals were coming soon, which impacted Wall Street on Tuesday.
In the Asian stock market, shares were mixed as investors priced Trump’s latest trade announcements. Major U.S. trading partners in the region, like Japan and South Korea, now face an August 1 deadline to reach a trade deal or be subjected to new tariff rates. However, Trump has sent mixed signals on how flexible that date is.
Shares mixed as trade talks progress
Japan’s Nikkei gained 0.17 percent as of 6:22 GMT, while South Korea’s KOSPI rose 0.62 percent. In China, the CSI300 INDEX rose 0.32 percent, while Hong Kong’s Hang Seng dipped 1.09 percent and Australia’s AXJO stock index fell 0.61 percent.
In the European stock market, the EURO STOXX 50 rose 0.57 percent to 5,371.95. In the United States, S&P 500 futures lost 0.15 percent as the index declined 0.07 percent.
Trump said on Tuesday that trade talks have been going well with the European Union and China, but he noted that he is only days away from sending a tariff letter to the EU.
Only two agreements have been reached since Trump’s April 2 “Liberation Day” reciprocal tariffs announcement, with Britain and Vietnam. In June, Washington and China also agreed on a framework covering tariff rates.
Copper surges to all-time high
U.S. copper futures surged over 10 percent to an all-time high after Trump threatened to impose new tariffs on the metal, which is vital for electric vehicles, military equipment, the power grid and various consumer products. These proposed duties would add to existing tariffs on steel, aluminum and car imports.
In contrast, copper futures in London and Shanghai declined on Wednesday, likely because traders may not have enough time to export significant volumes to the U.S. before the tariffs take effect. Trump also threatened to impose 200 percent tariffs on imported pharmaceuticals, though he indicated the measure might be delayed by up to a year.
Meanwhile, the U.S. dollar extended its recent gains on Wednesday, reaching 147.19 yen — its strongest level since June 20. The dollar index, which tracks the greenback against six major currencies, inched up to 97.602 after hitting a near two-week high of 97.837 on Tuesday.
The euro dipped slightly to $1.1715, while the British pound held steady at $1.3591.
In commodities, gold continued to slide, losing 0.3 percent to $3,292 per ounce, following a more than a 1 percent drop on Tuesday. Meanwhile, oil prices retreated modestly from Tuesday’s two-week highs. Brent crude slipped 22 cents to $69.93 a barrel, and U.S. West Texas Intermediate (WTI) crude declined 23 cents to $68.10.
