Asia-Pacific markets traded mostly lower on Tuesday after an upbeat session on Wall Street, lifted by Nvidia and other AI-related stocks. Traders were cautious after President Trump announced a global 25% tariff on US imports of steel and aluminum, effective from March 4. Most sectors dropped, with tech, property, and consumers slipping the most. Further losses were capped by optimism around China's AI sector. Japan ( NKY:IND ) market closed. The Japanese yen held steady around 152 per dollar on Tuesday after dropping in the previous session. China ( SHCOMP ) fell 0.16% to around 3,310, while the Shenzhen Component fell 1% to 10,525 on Tuesday, reversed a three-day rally. Investors weighed the potential impact of the latest tariffs imposed by the US. President Donald Trump enacted 25% tariffs on steel and aluminum imports, with no exceptions or exemptions, indirectly affecting China. The offshore yuan edged lower to around 7.31 per dollar, weighed down by a stronger US dollar as President Trump signed an executive order imposing 25% tariffs on all steel and aluminum imports. The Chinese government announced electricity pricing reforms, allowing market forces to determine on-grid prices for new energy sources, Xinhua News Agency reported. China's State Council announced on Monday its commitment to bolstering domestic consumption this year, emphasizing the importance of stabilizing foreign investment, which is vital for job creation. Hong Kong ( HSI ) fell 0.26% to 21,434 during Tuesday morning trading, marking its first drop in four sessions. India ( SENSEX ) fell 0.41% to 76,968 while touching its lowest level in nearly two weeks in morning trade on Tuesday, marking a decline for the 5th session. Australia ( AS51 ) rose 0.01% to close at 8,484 on Tuesday, breaking a two-day decline. The Australian dollar held steady around $0.627 on Tuesday, near two-week highs, supported by stronger commodity prices. In Australia, a private survey revealed that consumer confidence edged up slightly in February but remained in pessimistic territory, driven by concerns over strained household finances and persistent cost-of-living challenges. Australia passed on February 11 new legislation to provide tax incentives for companies producing renewable hydrogen or processing critical minerals, aiming to boost green industries and reduce reliance on China’s supply chain. Starting in July 2027, eligible producers will receive tax discounts for up to 10 years per project. In the U.S., on Monday, all three major indexes ended higher as investors looked past President Trump's latest tariff threats, focusing instead on gains in major tech stocks. U.S. stock futures dipped on Tuesday following President Donald Trump’s signing of an executive order imposing a 25% tariff on steel and aluminum imports: Dow -0.14% ; S&P 500 -0.19% ; Nasdaq -0.27% . Traders were also preparing for Fed Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday, hoping for more clarity on the future path of interest rates. Additionally, the latest consumer inflation report is due on Wednesday, followed by producer inflation data on Thursday. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector growth slows to four-month low in January Japan’s Jan services PMI revised upward to 53; real wages rises for 2nd consecutive month Trump in 'no hurry' to speak to China's Xi Jinping over escalating trade tensions Tit-for-Tat: China hits back with tariffs on U.S. coal and LNG, unveils Google probe U.S. will delay Canada tariffs as countries work on beefing up border security
