Asia-Pacific Shares Trade Mixed as Trump Targets Defense Payouts and Oil Slides

Equity markets across the Asia-Pacific region opened Thursday on divergent paths, reacting to overnight losses on Wall Street, fresh remarks from U.S. President Donald Trump aimed at defense contractors, and a pullback in crude prices.

Defense stocks pressured after White House warning

Speaking in Washington late Wednesday, Trump said he will block defense manufacturers from issuing dividends or conducting share repurchase programs until they address what he described as excessive executive compensation and production inefficiencies. Shares of major U.S. defense companies fell immediately following the comments, a decline that spilled into Asian trading hours as investors reassessed the sector’s near-term outlook.

Oil retreats on Venezuela supply prospect

Crude prices slipped after the president indicated that Venezuela’s interim government is prepared to turn over as much as 50 million barrels of oil to the United States. The statement heightened fears that a sudden influx of supply could weigh on an already fragile energy market.

As of 7:30 a.m. Singapore time (Wednesday 6:30 p.m. EST), Brent futures were down 0.51 percent at $60.39 a barrel. West Texas Intermediate added 0.61 percent to $56.33, paring deeper earlier losses but still reflecting overall weakness triggered by the supply concern. Broader energy market data can be found through the U.S. Energy Information Administration.

Regional index performance

Japan’s Nikkei 225 declined 0.46 percent at the open, while the broader Topix slipped 0.27 percent. In South Korea, the Kospi edged up 0.12 percent and the small-cap Kosdaq gained 0.10 percent.

Australia’s S&P/ASX 200 added 0.21 percent. Within the index, shares of BlueScope Steel dropped 2.54 percent after the steelmaker turned down a US$9 billion takeover approach from Australian conglomerate SGH and U.S.-based Steel Dynamics.

Futures tied to Hong Kong’s Hang Seng Index pointed to a softer start, trading at 26,348 versus the benchmark’s previous close of 26,458.95.

Wall Street closes lower

U.S. equities ended Wednesday in negative territory, breaking a three-session winning streak. The S&P 500 fell roughly 0.3 percent, while the Dow Jones Industrial Average lost 466 points, or about 0.9 percent.

Imagem: imagem internet 14

The tech-heavy Nasdaq Composite bucked the broader decline, rising nearly 0.2 percent. A 2.4 percent advance in Alphabet shares propelled the Google parent’s market capitalization above Apple’s for the first time since 2019.

After the New York close, U.S. stock futures were little changed in early Asian trade, suggesting investors were waiting for further clarity on both geopolitical risks and corporate earnings before making additional moves.

Drivers behind market sentiment

Market participants are juggling multiple catalysts:

• Geopolitical tension: Trump’s stance on defense payouts signals potential regulatory overhang for a sector already dealing with supply-chain challenges.
• Energy dynamics: The prospect of Venezuelan barrels entering the U.S. market raises questions about global output levels amid lingering demand uncertainty.
• Corporate activity: BlueScope’s rejection of a multibillion-dollar offer underscores ongoing consolidation attempts in the materials space, influencing sector-specific sentiment in Australia.
• Technology leadership: Alphabet’s market-cap milestone highlights the continuing strength of megacap technology firms even as broader indices face pressure.

Outlook

Investors will monitor follow-up statements from the White House and potential responses from major defense contractors regarding dividend and buyback policies. Energy traders are expected to focus on inventory reports and any formal agreements involving Venezuelan crude transfers. Meanwhile, scheduled economic indicators in the United States later this week, including jobless claims and manufacturing surveys, could further shape risk appetite across global markets.

Crédito da imagem: VCG via Getty Images