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Asian Stocks Climb as Chip Makers Benefit from US Tariff Exemption
7 Aug
Summary
- Asian markets mostly advance despite new US tariffs
- China's exports pick up in July, boosted by businesses
- Taiwan Semiconductor and South Korean chip stocks surge
As of August 7th, 2025, Asian financial markets appear to have largely shrugged off the impact of higher US tariffs that took effect earlier that month. Most major indices in the region posted gains, with the Nikkei 225 in Japan, the Hang Seng in Hong Kong, and the Kospi in South Korea all climbing by around 0.6%.
One of the standout performers was Taiwan's Taiex index, which jumped 2.4% as shares in Taiwan Semiconductor Manufacturing Corp. (TSMC), the world's largest contract chipmaker, surged 4.9%. This came after the US government announced an exemption from its 100% tariffs on semiconductors for companies that have invested in US production facilities, a move that is seen as a potential bargaining chip for trade partners.
South Korean chipmakers also saw strong gains, with Samsung Electronics jumping 2.1% on the news. The exemption is expected to help alleviate the impact of the higher US tariffs on the region's tech sector.
Elsewhere, China reported that its exports picked up in July, aided by a flurry of shipments by businesses taking advantage of a pause in the ongoing trade dispute between Beijing and Washington. This helped offset some of the concerns around the new US tariffs, which were imposed on a range of products from Asia.
