Trump's Tariff Shock: Global Stock Market Reactions

In a startling move, U.S. President Donald Trump announced a series of new tariffs set to take effect from October 1, impacting a range of imported goods including branded drugs. The announcement triggered a sharp decline in pharmaceutical stocks across Asia, reflecting investor caution amid uncertain market conditions.

Asian markets were broadly impacted, with notable losses in Japan's Topix pharmaceutical index and the Hong Kong-listed innovative drug index. These developments were compounded by reduced expectations for aggressive Federal Reserve rate cuts, following strong economic data from the U.S., further complicating the market climate.

Adding to the tension, the U.S. dollar surged, nearing 150 yen, while European indices demonstrated modest gains. Commodity markets also saw movement, with oil prices trending upwards. As investors focus on forthcoming economic data, the global financial landscape remains in a state of flux.

(With inputs from agencies.)