(Updates to Asia mid-afternoon)

*

Asian stocks waver as tariff threats sour sentiment

*

Hong Kong stocks slip on profit taking

*

Benchmark S&P 500 reaches all-time high

*

Gold chases record high touched last week

*

Investors wait on U.S-Russia talks

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 pointed to a muted open after

the benchmark stock index closed at a record high on

Tuesday, taking its 2025 gains to 10%, far outperforming the S&P

500 and the Nasdaq

UK stocks futures 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

, 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.

"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 fell 0.4% as investors

pocketed some profits. The index has risen 14% so far in 2025,

jostling with Germany's DAX index for best-performing

market in the world.

KIWI CLIPPED

The New Zealand dollar 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 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 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 rose 0.28% to $76.05 a barrel as

traders awaited the outcome of the U.S.-Russia talks in Riyadh.

Spot gold eased a bit to $2,932 an ounce, after

hitting a record high last week on safe haven demand.