On Friday, shares of Asian pharmaceutical companies experienced a decline following the announcement by U.S. President Donald Trump regarding new tariffs on furniture, heavy trucks, and pharmaceutical products. Japan’s Nikkei 225 declined 0.87% to close at 45,354.99, while the Topix rose marginally to close at a fresh record high of 3,187.02. Investors evaluated the September inflation figures from Tokyo, Japan’s capital. Beginning October 1, “any branded or patented Pharmaceutical Product” will incur 100% duties, with the exception of companies that establish drug manufacturing facilities in the U.S., Trump stated in a Truth Social post early Friday.

The Topix Pharma Index experienced a decline of 1.47% after the announcement. Daiichi Sankyo and Chugai Pharmaceutical experienced notable declines, with losses of 2.11% and 3.64%, respectively. Sumitomo Pharma extended losses, tumbling 5.33%. Major South Korean pharmaceutical companies such as Samsung Biologics and SK Bio Pharmaceuticals experienced declines of 1.71% and 3.71%, respectively. Pharmaceutical companies listed in Hong Kong also experienced a decline. Alibaba Health Information Technology and JD Health were also featured on the list of top losers, declining by 2.92% and 2.23%, respectively. In a separate post, Trump announced that a 25% levy will be imposed on imports of heavy trucks. In the meantime, kitchen cabinets, bathroom vanities, and “associated products” will incur a 50% tariff, whereas upholstered furniture will be subject to a 30% tariff.

In the U.S. overnight, Trump signed an executive order that approved a proposal aimed at keeping TikTok operational in the country. The deal places the company’s worth at $14 billion, as stated by Vice President JD Vance. A new joint-venture company will manage TikTok’s U.S. operations, pending approval from China, with ByteDance holding less than a 20% stake.  Core inflation in the city was reported at 2.5%, which is lower than the anticipated 2.8% from economists. Headline inflation remained unchanged at 2.5%. The inflation figures from Tokyo are often viewed as a precursor to broader national trends. South Korea’s Kospi fell by 2.45%, marking the largest decline in Asia, closing at 3,386.05, while the small-cap Kosdaq decreased by 2.03% to 835.19.

Australia’s S&P/ASX 200 increased by 0.17%, reaching 8,787.7. Hong Kong’s Hang Seng index fell by 1.35% to 26,128.20, whereas the mainland Chinese CSI 300 index decreased by 0.95% to 4,550.05. Overnight in the U.S., the decline in technology stocks on Wall Street persisted for a third consecutive day, influenced in part by increasing yields. The 10-year Treasury yield reached 4.2% following the release of initial claims for unemployment insurance, which were lower than anticipated. Oracle, a player in artificial intelligence, dropped 5%, and Tesla also experienced a decline, falling 4%. The S&P 500 finished lower by 0.50% at 6,604.72, while the Nasdaq Composite also declined, closing at 22,384.70. The Dow Jones Industrial Average declined by 0.38%, closing at 45,947.32.