Asia markets mixed on tariff fears, AI worries

February 24, 2026 (MLN): Asia markets delivered a mixed performance on Tuesday, reacted to renewed tariff warnings from Donald Trump.

Growing concerns over rapid advances in artificial intelligence also weighed on software and cybersecurity business models.

The market was unsettled after Trump wrote on Truth Social that countries attempting to “play games” following a recent court decision would face significantly higher tariffs.

His remarks came after the Supreme Court of the United States struck down tariffs imposed under the International Emergency Economic Powers Act last Friday, according to CNBC.

In response, Trump indicated he would move forward with a 15% global tariff of the Trade Act, reigniting concerns over escalating trade tensions and their potential impact on global supply chains and exports.

Focus also remained on monetary policy developments in China. The People's Bank of China kept its benchmark Loan Prime Rates unchanged, maintaining the one-year LPR at 3% and the five-year LPR at 3.5%.

The one-year LPR serves as a reference rate for new corporate and household loans, while the five-year rate is commonly used to price mortgage loans.

The decision signaled policy stability as Beijing balances economic support with financial risk management.

Mainland Chinese markets advanced 1.11% as trading resumed after the Lunar New Year break, showing renewed investor participation and optimism.

Hong Kong’s Hang Seng Index fell 1.84%, weighed down by losses in healthcare and consumer stocks.

Toy manufacturer Pop Mart International Group, known for its Labubu series, was the worst performer on the index, sliding 5.39% following the launch of a new product line.

In South Korea, the KOSPI climbed 1.37%, marking its third consecutive record high, fueled by strong gains in semiconductor shares. The smaller KOSDAQ rose 1.12%.

Japan’s Nikkei 225 added 0.6%, while the broader TOPIX edged slightly lower. Meanwhile, Australia’s S&P/ASX 200 reversed early gains to close down 0.41%.

Wall Street ended lower overnight, with the Dow Jones Industrial Average dropping 1.66%. The Nasdaq Composite declined 1.13%, while the S&P 500 lost 1.04%.

Technology and cybersecurity shares were under renewed pressure as investors assessed the potential impact of advanced AI-driven security tools.

On Friday, Anthropic introduced a new security feature 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 including Microsoft and CrowdStrike faced heavy selling pressure. Microsoft fell 3%, while CrowdStrike tumbled nearly 10% as investors reassessed growth prospects in the face of accelerating AI innovation.

With trade policy uncertainty resurfacing and AI reshaping the technology landscape, investors across Asia-Pacific and the United States remain cautious.

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