The US's tariff announcement on India creates a stir in stock markets and a mixed trend in Asian markets

International News: There has been a stir in the global markets after US President Donald Trump announced the imposition of a 25% tariff on India from August 1. Along with this decision, the Trump administration has also announced an additional penalty, which led to a slowdown in the US stock market. Also, the US Federal Reserve did not make any change in the interest rates in the July monetary meeting and maintained them at the level of 4.25-4.5%.

This effect was clearly visible in the stock markets on Wednesday. The Dow Jones Industrial Average fell by about 0.4%, while the S&P 500 recovered from an initial decline to recover by 0.1%. The tech-based Nasdaq Composite closed with a gain of 0.2%.

What did US Fed Chairman Jerome Powell say?

US Fed Chairman Jerome Powell said in a statement that it is still early to assess the effects of tariffs, and no clear decision has been taken on cutting interest rates in September. This indicates that no concrete stance has been decided on rates in the next monetary policy meeting.

Volatility in Asian markets

On the other hand, instability is also visible in Asian markets. The 15% tariff imposed by the US on imports from South Korea has increased investors' concerns. Japan's Nikkei 225 rose by about 299 points in the morning to reach 40,953.71, while South Korea's Kospi was up 0.16%. At the same time, Hong Kong's Hang Seng fell 1.35% to close at 24,835.82. China's SSE Composite Index also closed with a decline of 31.77 points.