Updates to Asia mid-afternoon

By Ankur Banerjee

SINGAPORE, Feb 19 (Reuters) - Global stocks were steady on Wednesday, with European and U.S. shares at record highs, as traders cautiously shrugged off U.S President Donald Trump's latest tariff threats on auto, semiconductor and pharmaceutical imports.

Since Trump's inauguration four weeks ago, he has imposed a 10% tariff on all imports from China, on top of existing levies. He has also announced, and delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada.

Trump told reporters on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would start at "25% or higher", rising substantially over the course of a year. He intends to impose similar tariffs on autos as soon as April 2.

But the market reaction to Trump's threats was muted as investors increasingly see them as bargaining tools, although the U.S. dollar was on the front foot as geopolitical worries, including tense Russia-Ukraine negotiations boosted safe-haven flows.

"I think investors assume that deals will be done and that tariffs will be delayed and reduced," said Ben Bennett, Asia-Pacific investment strategist at Legal & General Investment Management in Hong Kong.

"I’m worried that the disruption and uncertainty caused by such headlines is underestimated. At the margin, this could delay business investment and hiring decisions... but that’s not how most investors are thinking it seems."

European futures STXEc1 pointed to a muted open after the benchmark stock index STOXX closed at a record high on Tuesday, taking its 2025 gains to 10%, far outperforming the S&P 500 .SPX and the Nasdaq .IXIC

UK stocks futures FFIc1 were little changed ahead of inflation data that will likely highlight why the Bank of England has been has been cautious about cutting interest rates despite a weak overall economy.

In Asia, the focus has been on Chinese tech stocks .HSTECH, which have been on a tear recently as the emergence of AI startup DeepSeek and a meeting between Xi Jinping and business leaders in the sector lifted sentiment. .HK

"Green shoots are emerging in China’s economy and DeepSeek is injecting a shot of adrenaline into the sector," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank.

"While trade risks persist, tech optimism remains strong as the prospect of low-cost AI applications drives a reassessment of growth potential."

Hong Kong's Hang Seng Index .HIS fell 0.4% as investors pocketed some profits. The index has risen 14% so far in 2025, jostling with Germany's DAX index .GDAXI for best-performing market in the world. .HK

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The New Zealand dollar NZD=D3 was 0.3% higher at $0.5722 after the central bank slashed interest rates by 50 basis points to 3.75% as expected but hinted its aggressive cuts were set to slow.

The Australian dollar AUD= eased 0.11% to $0.6347 a day after the central bank delivered its first rate cut since 2020, but cautioned about the prospects for further easing.

Overnight, the U.S. benchmark S&P 500 <.SPX > squeaked past its previous record closing high as all three Wall Street indexes seesawed between gains and losses for much of the session before rising in the closing minutes.

European leaders vowed to step up support for Ukraine as the U.S. and Russia held bilateral talks on the war this week. Investors also hope this weekend's German election will lead to economic stimulus.

Minutes from the U.S. Fed's January meeting, when the central bank held borrowing costs at 4.25% to 4.5%, are due later on Wednesday. That follows hawkish comments from Fed Chair Jerome Powell in testimony to Congress last week and hot consumer price data.

Brent crude oil LCOc1 rose 0.28% to $76.05 a barrel as traders awaited the outcome of the U.S.-Russia talks in Riyadh.

Spot gold XAU= eased a bit to $2,932 an ounce, after hitting a record high last week on safe haven demand. GOL/

(Reporting by Ankur Banerjee and Tom Westbrook in Singapore, Chibuike Oguh in New York and Naomi Rovnick in London; Additional reporting by Nell Mackenzie in London; Editing by Neil Fullick and Kim Coghill)

((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))