Global markets today: Nikkei, Kospi trade mix after Trump slaps 50% tariff on Brazilian imports

Global markets today: Asian markets opened mixed on Thursday following an announcement by U.S. President Donald Trump that a 50% tariff will be imposed on Brazilian imports starting August 1.

In a letter, Trump stated that the new tariff — a significant jump from the 10% rate implemented in April — aims to counter what he described as a “very unfair trade relationship” between the U.S. and Brazil. He also noted that the sharp increase is, in part, a response to the ongoing legal proceedings against Brazil’s former president, Jair Bolsonaro.

Japan's Nikkei 225 index opened with a 0.45 per cent decline, while the Topix fell by 0.54 per cent. In contrast, South Korea's Kospi edged up by 0.24 per cent, and the Kosdaq, focused on smaller-cap stocks, gained 0.44 per cent. Meanwhile, Australia's S&P/ASX 200 rose by 0.51 per cent.

Wall Street indices ended higher on Wednesday, with the tech-focused Nasdaq leading the gains as Nvidia momentarily hit a $4 trillion valuation. Additionally, minutes from the Federal Reserve’s meeting boosted optimism that inflationary effects from former President Donald Trump’s tariffs wouldn’t prevent interest rate cuts this year.

The Dow Jones Industrial Average climbed 217.54 points, or 0.49 per cent, to close at 44,458.30. The S&P 500 advanced 37.74 points, or 0.61 per cent, ending at 6,263.26, while the Nasdaq Composite rose 192.87 points, or 0.95 per cent, finishing at 20,611.34.

The minutes from the Federal Reserve's mid-June meeting indicated that most officials believe interest rate cuts will likely be appropriate later this year, despite viewing the inflationary impact of Trump’s import tariffs as “temporary or modest.” However, there was limited backing for initiating a rate cut at the July meeting.

Meanwhile, Nvidia briefly became the world’s first company to reach a $4 trillion market valuation on Wednesday morning, reinforcing its status as a top pick among investors amid the AI boom. The chipmaker’s shares closed the day with a 1.8 per cent gain, bringing its market cap to approximately $3.97 trillion.

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