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Starting from Oct. 1, “any branded or patented Pharmaceutical Product” faces 100% duties, except for companies that build drug manufacturing plants in the U.S., Trump said in a Truth Social post early Friday.
The Topix Pharma Index fell 1.39% following the announcement. Daiichi Sankyo and Chugai Pharmaceutical were among the companies that led losses, declining 3.34% and 2.18%, respectively. Sumitomo Pharma tumbled 3.03%.
Heavyweight South Korean pharma stocks like Samsung Biologics and SK Bio Pharmaceuticals were down 1.66% and 2.66%, respectively.
Hong Kong-listed pharma companies were among the largest losers on the Hang Seng Index, with Wuxi Biologics in the lead, dropping 2.95%. Alibaba Health Information Technology and Sino Biopharmacutical were also among the top losers list, falling 1.84% and 1.25%, respectively.
In a separate Truth Social post, Trump said that imports of heavy trucks will be imposed a 25% levy. Meanwhile, kitchen cabinets, bathroom vanities and “associated products” will face a 50% tariff, while a 30% tariff will be charged for upholstered furniture.
Overnight in the U.S., Trump also signed an executive order approving a proposal that would keep TikTok alive in the U.S. The transaction values the business at $14 billion, according to Vice President JD Vance.
Under the terms, which China must approve, a new joint-venture company will oversee TikTok’s U.S. business, with ByteDance retaining less than a 20% stake.
Japan’s Nikkei 225 was flat, while the Topix rose 0.59% to reach a fresh record high. Investors also assessed September inflation data from Japan’s capital city of Tokyo.
Core inflation in the city came in softer than expected at 2.5%, compared to expectations of 2.8% from economists polled by Reuters. Headline inflation held steady at 2.5%. Tokyo’s inflation figures are widely considered to be a leading indicator of nationwide trends.
South Korea’s Kospi declined 2.02%, leading losses in Asia, while the small-cap Kosdaq retreated 1.57%.
Australia’s S&P/ASX 200 was marginally below the flatline.
Hong Kong’s Hang Seng index fell 0.86%, while the mainland Chinese CSI 300 index was flat.
Overnight in the U.S., the pullback in tech on Wall Street continued for a third straight day, partly due to rising yields.
The 10-year Treasury yield touched 4.2% after data on initial claims for unemployment insurance came in lower than expected. Artificial intelligence play Oracle slid 5%, while Tesla was also among the day’s laggards, falling 4%.
The S&P 500 closed down 0.50% at 6,604.72, as did the Nasdaq Composite, which settled at 22,384.70. The Dow Jones Industrial Average shed 0.38%, to finish at 45,947.32.
—CNBC’s Jonathan Varnian, Pia Singh and Sean Conlon contributed to this report.
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