Asian Markets Drop As US Data, New Tariff Threats Dent Sentiment

Economic Growth and Market Sentiment - The US economy showed stronger-than-expected growth in the second quarter, with a revised growth rate of 3.8 percent, up from the initial estimate of 3.3 percent, marking the fastest quarterly expansion in nearly two years [3] - Wall Street experienced a pullback, with all three main indexes ending in the red after reaching record highs earlier in the week, indicating concerns over stock valuations following a lengthy rally [4] Interest Rate Outlook and Federal Reserve Actions - The Federal Reserve recently cut interest rates due to a weakening labor market but indicated that further reductions are not guaranteed, leading to uncertainty in the market [2][3] - Decision-makers at the Federal Reserve have expressed varying views on future monetary policy in light of persistent inflation and soft job data [3] Tariff Implications on Pharmaceuticals - President Trump's announcement of new tariffs includes a 100 percent levy on "branded or patented" pharmaceuticals unless companies establish manufacturing plants in the US, which has raised concerns among Asian pharmaceutical firms [5][6] - Asian pharmaceutical companies, including Shanghai Fosun and South Korea's Daewoong, saw significant stock declines following the tariff announcement, with Fosun dropping more than four percent [6] Legislative Uncertainty - Traders are closely monitoring the ongoing negotiations in Washington regarding a funding package to prevent a government shutdown, with a deadline approaching next week [2][7] - The lack of agreement between Democrats and Republicans over spending plans is contributing to market unease, as both parties remain at an impasse [8]