Asian stock markets close mostly lower, with Fed autonomy at risk and tariff threat

By André Marinho

São Paulo, 08/26/2025 – Asian stock markets closed mostly lower today, after US President Donald Trump ordered the dismissal of Federal Reserve (Fed) director Lisa Cook and also threatened new tariffs.

In a letter published on Truth Social, the Republican said he had immediately removed Cook from her position following allegations that she had committed mortgage fraud. Cook, however, denied any plans to leave and stated that the US president does not have the authority to fire her.

In another post, Trump warned that he could impose new tariffs on countries that adopt any type of restriction against US tech giants. "Digital taxes, digital services legislation, and digital marketplace regulations are all designed to harm or discriminate against American technology," he declared.

The threat to the Fed's independence and renewed signs of trade protectionism soured the mood on trading desks during the Asian session. The Nikkei index, the benchmark on the Tokyo Stock Exchange, closed down 0.97% at 42,394.40 points. In Seoul, the Kospi lost 0.95% to 3,179.36 points.

In China, the Shanghai Composite Index fell 0.39% to 3,868.38 points, but the broader index managed to gain 0.18% to 2,440.79 points. In Hong Kong, the Hang Seng Index lost 1.18% to 25,524.92 points, adjusting after reaching its highest level since October 2021 yesterday. The blue-chip CSI 300 index fell 0.37% to 4,452.59 points, after hitting a three-year high the previous day.

In Taiwan, the Taiex index rose 0.11% to 24,305.10 points. In Oceania, the S&P/ASX 200 fell 0.41% to 8,935.60 points in Sydney.

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