(Updates to Asia afternoon)

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Trump announces new tariffs from October 1

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Pharmaceutical stocks fall in Asia, most indexes down

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Fed easing expectations recede on U.S. economic resilience

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Dollar headed for weekly gain

By Rae Wee

SINGAPORE, Sept 26 (Reuters) - Shares in Asia slid on

Friday, with pharmaceutical companies hit hard after U.S.

President Donald Trump unveiled a fresh round of punishing

tariffs and as traders pared bets of sharp U.S. rate cuts

following stronger-than-expected economic data.

Trump announced the U.S. would impose 100% duties on

imported branded drugs, 25% tariffs on heavy-duty trucks and 50%

tariffs on kitchen cabinets.

He also said he would start charging a 50% tariff on

bathroom vanities and a 30% tariff on upholstered furniture,

with all the new duties to take effect from October 1.

Shares of pharmaceutical companies across Asia tumbled in

the aftermath, with Japan's Topix pharmaceutical index

last down 1.2%, while the Hong Kong-listed innovative

drug index fell 2%.

Shares in South Korean drugmaker SK Biopharmaceuticals

slid 3.6%, while Australian biotech firm CSL

was down 1.5%.

An index tracking Chinese-listed furniture makers

also dropped 0.7%.

European futures were last trading higher, with

EUROSTOXX 50 futures up 0.35% while FTSE futures

rose 0.2%.

"We were bracing ourselves for the sectoral tariffs on

pharmaceuticals ... I think the key thing is the details are

still scant at this stage, but the tariffs seem to only apply to

branded or patented drugs. So that's quite important,

particularly for India," said Khoon Goh, head of Asia research

at ANZ.

"But I think the initial knee-jerk reaction most likely

would see probably a continuation of the equity market weakness

that we've seen, as investors take a cautious approach."

The announcements, made on Truth Social, did not include

details

about whether the new levies would apply on top of national

tariffs or whether economies with trade deals such as the

European Union and Japan would be exempted.

Washington's trade deals with Japan, the EU, and Britain

include provisions that cap tariffs for specific products such

as autos, semiconductors and pharmaceuticals, which means the

new higher national security tariffs likely will not raise them

above agreed rates.

Nasdaq futures were down 0.1% while S&P 500

futures dipped 0.06%.

Broader indexes in Asia were meanwhile in the red, with the

Nikkei last down 0.6% while Hong Kong's Hang Seng Index

was off 0.5%.

China's CSI300 blue-chip index eased 0.3%, and

MSCI's broadest index of Asia-Pacific shares outside Japan

was down 1%.

FED CUT BETS RECEDE

Also adding to headwinds for stocks were reduced

expectations of aggressive Federal Reserve rate cuts, after a

slew of data on Thursday suggested the U.S. economy remains in

rude health.

"Robust economic data - such as stronger durable goods

orders and an upward revision to GDP ... has shifted

expectations around future rate cuts and driven the dollar

higher," said Shier Lee Lim, Convera's lead FX and macro

strategist for APAC.

"U.S. equities have sold off modestly as rate cut optimism

fades."

Traders are pricing in just about 39 basis points worth of

rate cuts by December this year, compared to more than 40 bps

earlier this week.

Focus will now be on PCE data due later on Friday, which

could provide further clarity on the outlook for rates.

"There was some bullish optimism built into markets, because

everybody started thinking we're going to get somewhere between

four and six rate cuts, and now I think we're probably looking

at four at most, and maybe even that seems a bit generous at

this point of time into the end of 2026," said Tony Sycamore, a

market analyst at IG.

While most Fed policymakers continue to strike a cautious

tone on the pace of future easing, the central bank's newest

policymaker, Stephen Miran, on Thursday pressed for sharp U.S.

interest-rate cuts to prevent labour market collapse.

The dollar gave up some gains on Friday though remained

set for a weekly gain of about 0.7% against a basket of

currencies, buoyed by the receding rate cut bets.

The yen languished near the 150-per-dollar

level and was headed for a weekly fall of more than 1%, while

the euro last bought $1.1681.

In commodities, oil prices edged higher and were on track

for their biggest weekly gain in three months. Brent crude

futures were up 0.23% at $69.58 a barrel, while U.S.

crude rose 0.42% to $65.25 per barrel.

Spot gold fell 0.1% to $3,745.53 an ounce.