Investing.com-- Asian stocks were mixed on Wednesday with equities in Australia and Malaysia leading losses amid renewed uncertainty over U.S. President Donald Trump’s trade policies, while South Korean shares jumped tracking a modest rebound in U.S. tech giants.

Major U.S. stock indexes extended their biggest sell-off in months on Tuesday, rattled by Trump’s shifting stance on tariffs.

Malaysia, Philippines markets slide amid trade tensions

President Trump on Tuesday announced an increase in tariffs on Canadian steel and aluminum imports to 50%, only to retract the decision hours later, reinstating the original 25% tariffs. 

This abrupt policy reversal has contributed to heightened volatility in global financial markets.

The initial announcement of the tariff hike raised concerns about escalating trade tensions between the U.S. and its trading partners, prompting investors to reassess risks associated with international trade. 

The subsequent reversal of the decision added to the unpredictability, further unsettling investor confidence.

Most Asian markets, which are highly sensitive to global trade dynamics, reacted negatively to these developments. 

As of 02:37 GMT, China’s Shanghai Composite inched 0.2% lower, while the Shanghai Shenzhen CSI 300 index lost 0.3%. 

Hong Kong’s Hang Seng index was largely muted.

Malaysia’s KLCI index dropped 1.5%, while the Philippines’ PSEi Composite declined 1.2%.

Aussie stocks briefly enter correction territory as US rules out tariff exemption

Australia’s S&P/ASX 200 index slipped as much as 1.6% on Tuesday, briefly entering a market correction territory. 

It was currently trading 1.3% lower at 7,786.30 points. 

Australian Prime Minister Anthony Albanese said the country will not impose reciprocal tariffs on the U.S., despite President Trump ruling out exemptions on steel and aluminum tariffs. 

This comes after Trump initially suggested considering an exemption for Australia but later confirmed the 25% tariffs would apply to all countries.

S. Korea shares rebound as tech gains

South Korea’s KOSPI jumped 1.6% with tech heavyweights Samsung Electronics (KS:005930), and SK Hynix Inc (KS:000660) advancing 2.1%, and 4.5%, respectively.

U.S. tech giants such as NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), and Tesla Inc (NASDAQ:TSLA) saw a slight rebound on Tuesday, after sharp declines on Monday, splashing some gains into the Asian tech sector.

Japan’s Nikkei 225 inched 0.3% higher after plunging to a six-month low in the previous session. TOPIX rose 0.9%.

Futures for Nifty 50 edged up 0.2% on Wednesday.