February 24, 2026 (MLN): Asian markets were mixed on Tuesday, reacting to new tariff warnings from President Donald Trump.
Growing concerns about rapid advances in artificial intelligence also weighed on software and cybersecurity business models.
Markets were destabilized after President Trump wrote in Truth Social that countries that try to “play the game” will face significant tariff hikes following a recent court ruling.
His comments came after the U.S. Supreme Court last Friday struck down tariffs imposed under the International Emergency Economic Powers Act, according to CNBC.
In response, President Trump announced his intention to move forward with the introduction of a 15% global tariff in trade law, reigniting concerns about escalating trade tensions and its potential impact on global supply chains and exports.
Trends in China’s monetary policy also continued to attract attention. The People’s Bank of China kept its benchmark loan prime rate unchanged, keeping the one-year LPR at 3% and the five-year LPR at 3.5%.
The one-year LPR acts as a reference rate for new business and household loans, while the five-year rate is commonly used for pricing mortgages.
The decision signaled policy stability as the Chinese government balances economic support with financial risk management.
Mainland China markets rose 1.11% as trading resumed after the Lunar New Year holiday, with new investor participation and optimism.
Hong Kong’s Hang Seng Index fell 1.84%, weighed down by declines in healthcare and consumer stocks.
PopMart International Group, the toy maker known for its Lovebub series, was the worst performer in the index, dropping 5.39% following the launch of a new product line.
In South Korea, the KOSPI rose 1.37%, hitting a record high for the third consecutive year, driven by a significant rise in semiconductor stocks. The smaller Kosdaq rose 1.12%.
Japan’s Nikkei Stock Average rose 0.6%, but the overall TOPIX fell slightly. Meanwhile, Australia’s S&P/ASX 200 index reversed early gains to close 0.41% lower.
Wall Street ended lower overnight, with the Dow Jones Industrial Average dropping 1.66%. The Nasdaq Composite fell 1.13% and the S&P 500 fell 1.04%.
Technology and cybersecurity stocks are under new pressure as investors assess the potential impact of advanced AI-driven security tools.
On Friday, Anthropic introduced new security features for its Claude AI model in a limited research preview.
The tool is designed to scan software code for vulnerabilities and recommend fixes, raising concerns that AI solutions could disrupt traditional cybersecurity providers.
Software giants like Microsoft and CrowdStrike were facing strong selling pressure. Microsoft fell 3% and CrowdStrike fell nearly 10% as investors reassessed growth prospects in the face of accelerating AI innovation.
Investors in Asia-Pacific and the US remain cautious as trade policy uncertainty resurfaces and AI reshapes the technology landscape.
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