Shares of pharmaceutical companies across Asia experienced notable declines on Friday following an announcement from U.S. President Donald Trump regarding new tariffs on various products, including pharmaceuticals. Starting October 1, any branded or patented pharmaceutical product imported into the U.S. will be subject to a staggering 100% tariff. This levy is designed to impact firms that do not establish drug manufacturing plants in the U.S.
The Topix Pharma Index in Japan fell by 1.47% in response to the announcement, with several major companies facing significant losses. Daiichi Sankyo saw a decline of 2.11%, while Chugai Pharmaceutical dropped by 3.64%. Sumitomo Pharma experienced a sharper decline, tumbling 5.33%. Meanwhile, South Korean pharmaceutical giants also reported losses, with Samsung Biologics and SK Bio Pharmaceuticals down 1.71% and 3.71%, respectively. The downward trend was mirrored in Hong Kong, where companies such as Alibaba Health Information Technology and JD Health saw declines of 2.92% and 2.23%.
In a separate post on Truth Social, Trump announced additional tariffs, imposing a 25% levy on heavy truck imports, a 50% tariff on kitchen cabinets, bathroom vanities, and associated products, and a 30% tariff on upholstered furniture.
Shifting focus to the U.S. market, Trump signed an executive order aimed at keeping TikTok operational in the country, valuing the business at approximately $14 billion. Under the proposed terms, which require approval from China, a new joint venture will manage TikTok’s U.S. operations, with ByteDance retaining less than a 20% stake.
In Japan’s stock market, despite the turbulence in the pharmaceutical sector, the Nikkei 225 index remained largely unchanged, while the Topix rose 0.59% to a record high. Investors were analyzing the inflation data reported for September in Tokyo, which showed core inflation at 2.5%, slightly lower than the anticipated 2.8%. Headline inflation in the city also registered at 2.5%, considered a significant indicator of national trends.
In South Korea, the Kospi index declined by 2.02%, leading the region in losses, while the Kosdaq retreated by 1.57%. Australia’s S&P/ASX 200 index remained marginally below the flatline, indicating a cautious sentiment among investors. Additionally, the Hang Seng index in Hong Kong fell by 0.86%, while the CSI 300 index in mainland China showed little movement.
This week, the ongoing pullback in technology stocks on Wall Street extended into a third consecutive day, reflecting concerns over rising yields. The yield on the 10-year Treasury bond reached 4.2%, fueled by lower-than-expected claims for unemployment insurance. Prominent tech stocks also faced pressure; Oracle saw a decline of 5%, while Tesla fell by 4%. In terms of market indices, the S&P 500 closed down by 0.50%, with the Nasdaq Composite also shedding 0.50%, and the Dow Jones Industrial Average declining by 0.38%.
