Asian stock markets opened lower this morning, tracking the Dow Jones Industrial Average which closed down more than 500 points yesterday, while the Nasdaq tumbled over 2%. The sell-off came as oil prices surged, stoking inflation fears and pushing bond yields higher, alongside earnings reports from tech giants that sparked concerns over massive spending on artificial intelligence infrastructure. The Nikkei opened down 1.3% at 65,584.25, and South Korea's Kospi fell 1.4% to 7,000.78. Meanwhile, the Office of the United States Trade Representative announced that the US will impose import tariffs of 10 to 12.5% on goods from 60 economies, citing authority under Section 301 of the Trade Act of 1974, with the measures taking effect today. This coincides with the expiration of the temporary 10% global import tariff at 12:01 a.m. US time, after the US Supreme Court ruled in February to strike down President Donald Trump's broad tariff hikes. President Trump also posted on Truth Social that the US supports a peaceful nuclear program in Saudi Arabia without uranium enrichment, but that Saudi Arabia must accept the Abraham Accords, which establish diplomatic relations with Israel. Axios reported that Trump is seriously considering resuming major military operations against Iran, potentially more severe than Operation Epic Fury, the joint US-Israeli strikes on Iran in late February, and warned that if the Houthis attack ships in the Bab el-Mandeb Strait again, the US will strike Iran and the Houthis heavily. On the US economic front, the Labor Department reported that initial jobless claims fell by 22,000 to 187,000 last week, the lowest level since September 1969 and below analysts' expectations of 215,000. In Europe, the European Central Bank kept its policy rates unchanged as expected, with the deposit rate at 2.25%, the lending rate at 2.65%, and the refinancing rate at 2.40%, amid prospects of another rate hike in the autumn after energy prices rose due to Middle East fighting. The European Union fined Google 890 million euros, or about 34 billion baht, under the Digital Markets Act for giving preferential treatment to its own services over rivals in search results, marking the first time Google has been penalized under the law.
Alphabet Inc Class CEarnings reports from tech giants sparked concerns over massive spending on AI infrastructure, which may pressure Alphabet's margins.