Key Takeaways
- Former U.S. President Donald Trump announced that reciprocal tariffs have taken effect at midnight, with billions of dollars expected to flow into the United States from countries previously deemed to have taken advantage of American trade policies.
- Taiwan Semiconductor Manufacturing Company (TSM) shares surged to a record high after Taiwan confirmed the chipmaker would be exempt from a 100% U.S. tariff on semiconductor imports, largely due to its U.S. manufacturing commitments.
- Sony (SONY) rallied 6.0% in market trading, raising its earnings forecast despite anticipating a ¥100 billion ($700 million) hit from new U.S. tariffs on chips, buoyed by a strong performance from its entertainment divisions.
- Piper Sandler has increased its target price for AppLovin (APP) to $500, up from its previous target of $470.
- Asian markets presented a mixed picture, with Japan's 30-Year JGB yield steadying at 3.07% following an auction, while Philippine stocks declined by up to 0.94% to 6,310.97 points.
President Donald Trump's "reciprocal tariffs" officially commenced at midnight, with the former president asserting that this move would bring "billions of dollars" into the U.S. from nations that have historically benefited from imbalanced trade relations. This broad imposition of duties, ranging from 10% to 50% or higher for some countries like India and Brazil, marks a significant shift in global trade dynamics.
In a notable development for the technology sector, Taiwan confirmed that its leading chip manufacturer, Taiwan Semiconductor Manufacturing Company (TSM), will be exempt from the new 100% U.S. tariff on semiconductor imports. This exemption, attributed to TSMC's substantial investments in U.S. production facilities, propelled the company's shares to a record high. The tariff policy appears designed to incentivize domestic chip manufacturing.
Japanese conglomerate Sony (SONY) saw its shares rally 6.0% in market trading following its decision to raise its earnings forecast. The company's strong performance in its entertainment divisions helped offset an anticipated ¥100 billion ($700 million) impact from the new U.S. tariffs on chips. This resilience highlights the diversified nature of Sony's business, which has evolved from electronics to a dominant force in gaming, movies, and music.
In the financial services sector, Piper Sandler has shown increased confidence in AppLovin (APP), raising its target price for the mobile technology company to $500 from a previous $470. This analyst upgrade signals a positive outlook for AppLovin's future performance.
Across Asian markets, Japan's 30-Year JGB yield remained steady at 3.07% after a recent auction, indicating stability in the long-term bond market. Meanwhile, the Central Bank of the Philippines reported that its gross reserves stood at $105.7 billion at the end of July. Despite this robust reserve level, Philippine stocks experienced a decline of up to 0.94%, closing at 6,310.97 points. India's financial markets showed stability, with the 10-year benchmark government bond yield holding at 6.41%, matching its previous close, and the Indian Rupee opening at 87.68 against the dollar, slightly stronger than its 87.73 previous close.
In other regional news, Vietnamese budget carrier VietJet plans to hire over 5,000 new staff in Thailand as it accelerates its flight and route expansion strategy.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.