Asian markets fell on Tuesday after US President Donald Trump’s market-shaking announcements, including the unprecedented dismissal of a Federal Reserve governor and fresh threats of tariffs and export curbs on technology.
The losses came as momentum from last week’s dovish speech by Fed Chair Jerome Powell faded, with traders instead bracing for key earnings and economic data. On Wall Street, stocks turned lower Monday ahead of Nvidia’s earnings report, heightening concerns over a possible tech bubble.
Tokyo’s Nikkei closed 1 percent down, leading regional declines. Hong Kong, Shanghai, Seoul and Sydney also slipped, while Taipei edged higher. Early European trading saw London, Paris and Frankfurt open in the red.
Trump said late Monday he was removing Fed governor Lisa Cook over alleged false statements on mortgage agreements. The move — highly unusual and likely to spark legal challenges — raised fresh concerns about central bank independence, already strained by Trump’s public pressure on Powell to cut rates.
The dollar dipped initially before recovering as Cook vowed to stay in her role. Gold, seen as a safe haven, gained ground. “The independence of the Fed, already fraying, looks tattered against the gusts of politics,” said Stephen Innes of SPI Asset Management.
Investors are now focused on US GDP data due Thursday and a key inflation reading Friday, which could shape expectations for future rate cuts.
Adding to jitters, Trump threatened new “substantial tariffs” on countries imposing digital taxes on US firms and signaled possible export restrictions on advanced US microchip technology.
Oil prices also slipped, reversing recent gains on speculation over a possible peace deal in Ukraine.
Key figures around 0715 GMT:
Tokyo – Nikkei 225: down 1.0% at 42,394.40 (close)
Hong Kong – Hang Seng Index: down 0.8% at 25,621.83
Shanghai – Composite: down 0.4% at 3,868.38 (close)
London – FTSE 100: down 0.7% at 9,258.70
Euro/dollar: down at $1.1609 from $1.1624 Monday
Pound/dollar: down at $1.3441 from $1.3460
Dollar/yen: up at 147.83 yen from 147.70 yen
Euro/pound: up at 86.36 pence from 86.35 pence
West Texas Intermediate: down 0.7% at $64.32 a barrel
Brent North Sea crude: down 0.6% at $68.37 a barrel
New York – Dow: down 0.8% at 45,282.47 (close)
