Asia-Pacific markets mostly fall as investors assess BOJ rate decision and fresh tariffs on India, South Korea

Asia-Pacific markets mostly ended lower Thursday.

Hong Kong's Hang Seng Index fell 1.51% in its last hour while mainland China's CSI 300 index declined 1.82% to 4,075.59.

Meanwhile, South Korea's Kospi index lost 0.28% to close at 3,245.44, while the small-cap Kosdaq moved up 0.2% to 805.24.

Australia's S&P/ASX 200 benchmark fell 0.16% to end the day at 8,742.80.

Over in India, the 50-stock benchmark Nifty 50 was up 0.18%, while the BSE Sensex index was flat as of 1.05 p.m. Indian Standard Time (3.35 a.m. ET).

— Amala Balakrishner

Shares of Hanwha Ocean surged as much as 16.06% on Thursday to their highest levels since July 2015, following U.S. President Donald Trump's announcement of a blanket 15% tariff on Seoul's exports to the U.S.

According to Reuters, Kim Dong-kwan, the vice chairman of the Hanwha Group, was part of a delegation of business leaders in Washington lobbying for a trade deal, which included Hyundai Motor Group Chairman Euisun Chung and Samsung Electronics Chairman Jay Y. Lee.

Hanwha Group is expected to expand or upgrade facilities at its Philly Shipyard in Philadelphia, which it acquired last year, Yonhap News Agency reported, while playing a key role in revitalizing U.S. shipbuilding efforts.

Thursday marked the South Korean shipbuilder's second consecutive session in the green. Its gains follow a surge in its operating profits in the second quarter ended June, as well as a slew of announcements.

Read the full story here.

— Amala Balakrishner

The Bank of Japan's decision to hold interest rates at 0.5% reflects the "delicate balancing act policymakers face" amid the uncertain global environment, Capital Group's investment director Hiroaki Amemiya said.

He remained cautiously optimistic about Japan's economic potential, despite the headwinds posed by the U.S. tariffs, due to "encouraging signs" such as rising wages and steady domestic demand.

"While global trade tensions present challenges – particularly for export-driven sectors like autos and electronics – Japan's low average tariff rate underscores its openness and positions it well for constructive engagement and potential negotiation opportunities," he wrote in a Thursday note.

Amemiya expects short-term volatility in the yen, but foresees that the safe haven currency will appreciate over the longer-term. He also expects a narrowing in the interest rate differential between the U.S. and Japan.

Investors should continue to focus on companies with robust fundamentals, he said, particularly in businesses " that combine financial strength, pricing power and adaptability to a shifting global landscape."

He sees opportunities in sectors tied to technology, domestic consumption and financial services.

— Amala Balakrishner

Indian stocks fell in early trade Thursday following the U.S. President Donald Trump imposed 25% tariffs on Indian imports as well as an unspecified "penalty." 

The benchmark Nifty 50 was down 0.56%, while the BSE Sensex index fell 0.97% as of 9:25 a.m. Indian Standard time (11:55 p.m. ET Wednesday).

— Amala Balakrishner

Yields on Japanese Government Bonds (JGBs) ticked up Thursday after the Bank of Japan stood pat on interest rates at 0.5% for the fourth consecutive meeting, amid global uncertainties and looming growth risks.

The yield on 10-year JGBs moved up around 1 basis point to 1.571% as of 12:35 p.m. local time (11:35 p.m. ET Wednesday).

The yield on 5-year JGBs also added 1.6 basis points to 1.091%, while that of 20-year JGBs ticked up marginally to 2.550%.

Meanwhile, the yield on 30-year JGBs moved up just over 1 basis point to 3.096%.

The Japanese yen appreciated by 0.49% against the greenback to 148.77.

— Amala Balakrishner

South Korean auto stocks plunged Thursday after U.S. President Donald Trump imposed a blanket 15% tariff on imports from the country including autos, which he had threatened with a 25% tariff earlier.

The Asian country's Kia Corp was trading 5.25% lower, while Hyundai Motor fell 3.48% as of 10.53 a.m. local time (9.53 p.m. ET Wednesday).

— Amala Balakrishner

Chinese and Hong Kong stocks started the day lower Thursday, following mixed trading in the other key Asia-Pacific markets.

As of 9.39 a.m. local time (9.39 p.m. ET Wednesday), the Hang Seng Index fell 0.91%, while mainland's CSI 300 was flat.

— Amala Balakrishner

Shares of Samsung Electronics rose as much as 1.92% Thursday after its second-quarter operating profit missed expectations and came in at 4.7 trillion Korean won ($3.38 billion).

The South Korean memory chipmaker noted that it was hit by a slump in its chip business.

Read more here.

— Amala Balakrishner, Dylan Butts

Shares of Nissan Motor surged as much as 4.9% Thursday, reversing course from losses in its previous two sessions.

This comes as the Japanese automaker reported operating losses of 79,124 million yen ($530.17 million) for its first fiscal quarter ended June, due to to lower sales volumes, adverse exchange rate movements and tariffs on its exports to the U.S.

— Amala Balakrishner

Asia-Pacific markets opened mixed Thursday.

Japan's Nikkei 225 benchmark moved up 0.21% while the broader Topix index ticked up 0.28%, as of 8.10 a.m. Singapore time (8.10 p.m. ET Wednesday).

In South Korea, the Kospi index fell 0.14% while the small-cap Kosdaq was flat.

Over in Australia, the S&P/ASX 200 benchmark fell 0.53%.

— Amala Balakrishner

Good morning from Singapore.

Investors will be keeping a close watch on South Korean markets after U.S. President Donald Trump announced a blanket tariff of 15% on the country's exports to the U.S. Japanese markets will also be watched keenly as the Bank of Japan is expected to stand pat on short-term interest rates at 0.5% at the close of its two-day policy meeting later in the day.

Japan's benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 40,855 while its counterpart in Osaka last traded at 40,730, against the index's Wednesday close of 40,654.70.

Futures for Hong Kong's Hang Seng index stood at 24,934, pointing to a weaker open compared with the last close of 25,176.93.

Australia's S&P/ASX 200 was set to start the day lower with futures tied to the benchmark at 8,694, compared with its last close of 8,756.40.

— Amala Balakrishner

S&P 500 futures and Nasdaq 100 futures rose on Wednesday night, boosted by after-hours gains in shares of Meta Platforms and Microsoft.

Futures tied to the broad market benchmark rose 0.6%, while Nasdaq 100 futures gained 0.9%. Futures tied to the Dow Jones Industrial Average rose 23 points, or 0.05%.

— Lisa Kailai Han

The S&P 500 closed lower on Wednesday and gave up its gain from earlier in the session after Federal Reserve Chair Jerome Powell threw some cold water on the prospects of a September rate cut.

The broad market index lost 0.12% to close at 6,362.90. The Nasdaq Composite added 0.15% to 21,129.67, while the Dow Jones Industrial Average fell 171.71 points, or 0.38%, to finish the session at 44,461.28.

— Brian Evans

The Fed can keep the interest rate steady while waiting to see if tariff policy pushes up inflation, Powell said.

"Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen," Powell said.

Powell said a "reasonable base case" could be that effects to inflation will be "short lived." But he also cautioned that levies could cause inflationary changes that are "more persistent."

"Our obligation is to keep longer term … inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem," Powell said.

"For the time being, we're well positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance," he added. "We see our current policy stance as appropriate to guard against inflation risks."

— Alex Harring

The Fed kept monetary policy unchanged, as was widely expected. However, two central bank officials — Christopher Waller and Michelle Bowman — dissented in the decision, pushing for the Fed to cut the overnight rate by 0.25 percentage point.

This was the first time since 1993 that the Fed's policy decision was met with so much dissent.

— Fred Imbert