Japan hits record high while Indian equities sink; China’s surprise export surge adds new twist
Asia-Pacific investors woke up Thursday to a sharp and polarizing shift in global trade winds. U.S. President Donald Trump’s late-night vow to slap a 100% tariff on all imported chips — with carveouts for firms producing within U.S. borders — rattled some nerves and boosted others. Tech-heavy markets surged. India slipped. And China posted its most robust export data in over a year, just as everyone’s bracing for another round of tariff punches.
While Tokyo and Taipei rallied, Mumbai wasn’t feeling the optimism. Nor were oil buyers — not entirely, anyway.
Japanese and Taiwanese Tech Stocks Jump as Tariff Threat Rattles Rivals
Japanese equities led the region’s rally, with the Topix index briefly hitting an all-time high. A mix of tech exuberance and defensive hedging pushed investors into the country’s bellwethers.
In Taiwan, things looked even more chipper. Literally. The island’s equity benchmark soared more than 2% during Thursday’s session, led largely by gains in semiconductor and electronics names.
One-sentence paragraph? Sure. Here’s one: Investors chased any company that didn’t look vulnerable to American trade wrath.
Meanwhile, analysts scrambled to figure out exactly what Trump meant by “building in the United States.” There’s no fine print yet. Just bold headlines and a swirl of guesswork.
• TSMC and Tokyo Electron were among the top gainers
• South Korea’s Kospi inched up, but Samsung shares were mostly flat
• Markets in Australia and Singapore posted modest gains
No one’s quite sure if this will end in a full-scale semiconductor trade war — but some are already pricing one in.
India Gets Walloped After Trump’s Second Tariff Punch in a Week
If anyone in New Delhi was hoping the first 25% tariff was a bluff, they got their answer by Wednesday night. Trump doubled down. India’s facing a 50% tariff wall now, and its stock market wasn’t thrilled.
The Nifty 50 index dipped 0.31% in early trade, while the Sensex shed 0.35%. This wasn’t a collapse — but the mood was unmistakably sour.
Two sentences here: Many investors fear Indian IT and hardware exporters could soon be in the crosshairs. Trump hasn’t mentioned them directly, but with tensions growing, few are ruling it out.
Third sentence here: And with general elections not far off, India may find itself playing defense on multiple fronts.
There was also chatter in Mumbai’s trading floors about what this means for Make in India. If U.S. firms get exemptions for producing locally, could Indian firms do the same by opening up shop in Texas or Arizona? Far-fetched? Maybe. But nothing’s off the table right now.
Oil Prices Nudge Up as Traders Read Tariffs as Inflationary
Oil traders have seen this movie before. Tariff threats, supply chain disruptions, and inflation — they tend to move the same markets in similar ways.
Crude prices edged higher after Trump’s statement. Brent rose 1% to hit $67.56 per barrel, while WTI climbed 1.13% to touch $65.06. The move wasn’t dramatic, but it was clear.
Here’s a short, sharp paragraph: A 100% tariff on chips could mean higher prices for everything from laptops to cars. That inflation might feed back into oil demand, or at least expectations of it.
The other factor? Energy markets are trying to read Trump’s mind on how long this policy lasts. And whether it’s just the beginning.
Here’s a look at current oil price movements:
| Crude Type | Price (USD) | % Change |
|---|---|---|
| Brent Crude | $67.56 | +1.00% |
| West Texas Intermediate (WTI) | $65.06 | +1.13% |
Some analysts warned the move could be short-lived if broader recession fears creep back in.
China Posts a Trade Surprise — But Tariff Clock Still Ticking
In what some traders are calling a perfectly timed move, China posted its strongest monthly trade report in a year — just as U.S.-China tensions appear poised to reignite.
Exports surged 7.2% in July year-over-year, far outpacing Reuters’ estimate of 5.4%. Imports? Even more impressive. They jumped the most in over a year.
This caught quite a few analysts off guard. Not because China isn’t capable — but because many expected weaker global demand.
One-sentence paragraph coming in: Turns out, China’s trade machine still has juice.
There was speculation Beijing may have rushed shipments ahead of any fresh tariffs. It wouldn’t be the first time. Trump’s language on China remains ambiguous, but few believe chip tariffs will be the last word.
Some suspect Beijing may respond in kind — not with tech, but perhaps agriculture, aviation, or even rare earths.
No One Really Knows Where This Ends — and That’s the Problem
The truth? Most market players have no idea what the actual policy mechanics will look like.
Trump says exemptions will apply to firms “building in the U.S.” But how much building is enough? What counts as domestic? Assembly? Fabrication? Ownership?
There’s no framework. Just vibes.
And those vibes are now ricocheting across boardrooms and trading desks from Seoul to Seattle.
Companies will likely have to spend weeks — if not months — lobbying the White House for clarity. The chip industry, already grappling with China decoupling, now has a second headache: tariff eligibility.
There’s a strange mood in the markets. One part fear. One part FOMO. All of it wrapped in uncertainty.
