Asian stocks ended mixed on Wednesday, with Chinese and Hong Kong markets falling sharply after U.S. President Donald Trump threatened tariffs on the EU and China to address trade imbalances and combat fentanyl trafficking.
Speaking to reporters at the White House, Trump reiterated his administration's plans to discuss a potential 10 percent tariff on goods imported from China starting February 1 to curb the flow of deadly drug fentanyl that is being sent from China to the U.S. via Mexico and Canada.
Meanwhile, Europe will respond to any tariffs imposed by President Donald Trump in a proportionate way, the European Union's commissioner for the economy told CNBC after Trump repeated his threat to impose tariffs on EU goods entering the United States.
The dollar held ground in Asian trade amid uncertainty about Trump's tariff plans. Gold held at two-month highs above $2,750 per ounce while oil extended declines on concerns of higher U.S. output in a market widely expected to be oversupplied this year.
China's Shanghai Composite index fell 0.89 percent to 3,213.62 on signs of rising tensions between the world's largest economies.
Hong Kong's Hang Seng index plummeted 1.63 percent to 19,778.77, snapping a six-day winning streak on broad losses among technology companies as Trump announced a major private-sector investment aiming to "beat China" in AI.