Gulf markets show mixed reaction
Major stock markets in the Gulf were mixed in early trade on Thursday, as investors weighed the potential impact of US President Donald Trump’s tariffs on global economic growth.
Trump escalated his tariff campaign on Wednesday, announcing a 50 percent tariff on US copper imports and a 50 percent duty on goods from Brazil, both effective on August 1.
Trump also issued tariff notices for seven minor trading partners, adding to 14 others issued earlier in the week, including 25 percent levies on imports from South Korea and Japan, set to take effect on August 1 unless agreements are reached.
Saudi Arabia’s benchmark index edged 0.1 percent higher, supported by a 1.2 percent gain in Saudi National Bank, the kingdom’s largest lender by assets. However, oil giant Saudi Aramco slipped 0.1 percent.
Aramco is in talks with Commonwealth LNG to buy liquefied natural gas from the US company’s proposed facility in Cameron, Louisiana, as it seeks to strengthen its position in the market for the fuel, Reuters reported on Wednesday.
Dubai’s main share index added 0.1 percent, with Gulf Navigation advancing 3.3 percent.
China and Hong Kong stocks
China and Hong Kong stocks rallied to multi-month highs on Friday, led by rare earth and tech gains, ahead of US-China talks at the ASEAN Summit and expectations of further policy support.
At the midday break, the Shanghai Composite index jumped 1.1 percent to 3,546.50 points, the highest level since October last year. The blue-chip CSI300 index also added 1.1 percent.
The rare earth sector led the rally with a surge of nearly 6 percent to its highest since early 2023, while the brokers shares jumped nearly 4 percent.
In Hong Kong, the benchmark Hang Seng Index was up 1.9 percent at 24,485.49, a 4-month high. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index rose 1.8 percent.
Japan’s Nikkei reverses early gains
Japan’s Nikkei share average reversed early gains to trade marginally lower on Friday as declines in Uniqlo-brand owner Fast Retailing erased gains in technology heavyweights.
The Nikkei was down 0.1 percent to 39,595.96 as of 0158 GMT, after rising as much as 0.8 percent earlier in the session.
The index is on track to lose 0.5 percent for the week.
The broader Topix was up 0.73 percent at 2,832.86.
Fast Retailing tanked 6.7 percent after the company said on Thursday higher US tariffs would start impacting its US operation significantly from later this year and it planned to raise prices to mitigate the blow.
“Investors were worried about Fast Retailing’s outlook for the next fiscal year. Still, gains of technology stocks supported the index,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
The market also sold stocks as soon as the Nikkei approached the psychologically important level of 40,000, strategists said.
Chip-testing equipment maker Advantest rose 0.9 percent to track a 0.75 percent gain in the Philadelphia SE Semiconductor Index overnight.
Indian equity benchmarks may open lower
India’s equity benchmarks are set to open lower on Friday, following weaker-than-expected earnings from information technology major Tata Consultancy Services and US President Donald Trump’s fresh tariffs on its key trading partner Canada.
The Gift Nifty futures were trading at 25,282.5 points, as of 8:01 a.m. IST, indicating that the Nifty 50 will open below Thursday’s close of 25,355.25.
Tata Consultancy Services, which reported its first-quarter earnings after market hours on Thursday, missed revenue estimates as its clients stayed cautious about non-essential spending amid tariff-related uncertainty.
The revenue shortfall at TCS, the first Indian tech major to report results, raised concerns about future demand for the country’s $283 billion IT sector and dragged down US-listed shares of rivals Infosys and Wipro by about 4 percent and 5 percent, respectively.
Multiple brokerages have trimmed their fiscal 2026 earnings forecasts for TCS after its earnings, citing subdued demand environment.
India’s equity benchmarks slipped about 0.5 percent on Thursday, dragged by IT stocks on expectations of “soft” earnings for TCS.
Australian shares inch lower as banks
Australian shares edged lower on Friday, as losses in banking and gold stocks outweighed gains in miners, while Johns Lyng Group soared after the building services provider agreed to a takeover offer from Pacific Equity Partners.
The S&P/ASX 200 index fell 0.1 percent to 8,583.6 by 0026 GMT.
The benchmark has lost 0.2 percent so far in the week after two consecutive weeks of gains.
Overnight, the S&P 500 and Nasdaq registered record closing highs, and Nvidia’s market value closed above $4 trillion for the first time.
Markets largely shrugged off US President Donald Trump’s latest tariff missives, including a new 50 percent tariff on copper imports from August 1.
In Sydney, shares of Johns Lyng Group climbed 23.3 percent and were on track for their best day ever, after the company agreed to be acquired by Pacific Equity Partners for an equity value of A$1.1 billion ($725.01 million). Index heavyweight financials fell 0.8 percent.
South Korean shares rise
South Korean shares rose on Thursday, led by chipmaker SK Hynix after a rally in its key customer, US-based artificial intelligence chip giant Nvidia, and as investors welcomed the central bank’s decision to stand pat on its interest rates.
The benchmark KOSPI was up 19.24 points, or 0.61 percent, at 3,152.98, as of 0055 GMT, its highest intraday level since mid-September 2021.
As expected, the Bank of Korea held interest rates steady, as policymakers steered a cautious path amid concerns about financial stability risks stemming from rising household debt and economic pressure from US tariffs.
Shares of SK Hynix advanced 1.51 percent, mirroring a strong performance in Nvidia after the AI darling became the world’s first company to hit a $4 trillion market value.