Asia Market gains on Korean auto rally after U.S. tariff cut

December 02, 2025 (MLN): The Asia markets traded mostly higher on Tuesday, with South Korean auto shares leading gains after the United States confirmed that reduced tariffs on Korean vehicles would apply retroactively from November 1.

U.S. Commerce Secretary Howard Lutnick revealed that Washington is cutting auto tariffs on South Korean imports to 15%, adding that the U.S. will also remove duties on airplane parts and align Korea’s reciprocal tariff rate with that of Japan and the European Union.

The update, shared via an X post from the U.S. Department of Commerce, boosted major Korean automakers, with Hyundai Motor rising nearly 5% and Kia Corp gaining about 3%.

South Korea’s benchmark Kospi advanced 1.02%, though the tech-heavy Kosdaq dipped 0.13%, according to the CNBC.  

Meanwhile, fresh government data showed that Korea’s consumer inflation held steady at 2.4% year-on-year in November slightly above economists’ expectations of 2.35%.

Core inflation, excluding food and energy, rose 2%. The stable reading strengthens expectations that the Bank of Korea will maintain its policy rate at 2.5%, which it left unchanged for the fourth consecutive meeting last week.

Across the broader Asia-Pacific region, equities also trended higher.

Japan’s Nikkei 225 climbed 0.54%, while the Topix added 0.44%, led by gains in financials, energy, and basic materials. Industrial robotics leader Fanuc surged 5.86%, NGK Insulators jumped up to 6%, and Fujikura advanced 2.29%.

Japanese Government Bond yields continued their sharp rise amid speculation that the Bank of Japan may deliver a rate hike as early as this month.

The 10-year JGB yield touched 1.88%, its highest level since 2008. The 20-year yield climbed to 2.915%, the strongest since 1999, while the 30-year yield reached an all-time high of 3.411%.

Elsewhere, Australia’s S&P/ASX 200 edged up 0.12%. Hong Kong’s Hang Seng Index gained 0.49% at the open, while China’s CSI 300 slipped 0.17%.

Tech giant Alibaba rose nearly 3%, extending its winning streak to a third session after launching its Quark AI smart glasses in China on November 27.

In India, the Nifty 50 fell 0.22%, and the BSE Sensex slipped 0.37%. Bajaj Housing Finance dropped more than 8% after parent firm Bajaj Finance announced plans to sell up to 2% of its stake in the company.

U.S. equity futures were little changed in Asian trading hours after the S&P 500, Nasdaq Composite, and Dow Jones ended their five-day winning streaks on Monday, pressured by a broad crypto sell-off.

Bitcoin slumped roughly 6% overnight falling below $86,000, weighing on investor sentiment. Crypto-linked stocks such as Coinbase and Strategy also retreated.

AI-related shares were not spared either, with Broadcom dropping more than 4% and Super Micro Computer sliding over 1%, indicating renewed profit-taking in the sector.

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