The announcement triggered a sharp selloff in Asian healthcare stocks. Japan’s Topix Pharma Index fell 1.47%, with notable losses from Daiichi Sankyo (-2.11%), Chugai Pharmaceutical (-3.64%), and Sumitomo Pharma plunging 5.33%. South Korean pharmaceutical companies such as Samsung Biologics (-1.71%) and SK Biopharmaceuticals (-3.71%) also faced pressures. Hong Kong’s health-tech stocks, including Alibaba Health Information Technology (-2.92%) and JD Health (-2.23%), declined along with the broader regional selloff.
The tariffs extend beyond drugs, with additional levies including a 25% tariff on heavy trucks, 50% on kitchen cabinets and bathroom furnishings, and a 30% tariff on upholstered furniture, further unsettling investor confidence.
Despite the turbulence in healthcare stocks, Japan’s wider market showed resilience with the Nikkei 225 closing flat and the Topix index edging up 0.59% to a record high. Inflation data from Tokyo showed easing core inflation to 2.5% in September, suggesting a potential cooling trend in prices.
Elsewhere in Asia, the South Korean Kospi dropped 2.02%, the smaller Kosdaq fell 1.57%, Hong Kong’s Hang Seng dropped 0.86%, and mainland China’s CSI 300 ended flat. Australia’s S&P/ASX 200 hovered slightly below the flatline.
On Wall Street, technology stocks continued to fall amid rising U.S. Treasury yields, with the 10-year yield climbing to 4.2% after stronger-than-expected labor market data. Key tech companies like Oracle and Tesla experienced significant declines, contributing to a broad market pullback. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed lower.
In parallel, President Trump approved a $14 billion deal to keep TikTok operational in the U.S. under a new joint venture controlling TikTok’s American business, with Beijing’s approval still pending.
The sweeping tariffs are disrupting markets and could have widespread implications for global trade and manufacturing strategies, especially in the healthcare sector. Investors remain cautious as geopolitical and economic uncertainties persist.
This development highlights the growing trend of protectionist measures impacting global markets and raises questions about future supply chain realignments and international trade relations.