Stock markets in Asia were mixed overnight, as investors digested Trump’s latest trade announcements, which included a 50% tariff on copper and soon-coming levies on semiconductors and pharmaceuticals.
The Nikkei (^N225) rose 0.3% on the day in Japan, while the Hang Seng (^HSI) fell 1.1% in Hong Kong. The Shanghai Composite (000001.SS) was 0.1% down by the end of the session.
In South Korea, the Kospi (^KS11) added 0.6% on the day.
It comes as Japan and South Korea are among major US trading partners in the region facing a 1 August deadline to reach a trade deal or be subjected to new tariff rates, although Trump has sent mixed signals on how flexible that date is.
On Monday, Trump said it was “firm, but not 100% firm” before hardening his stance on Tuesday by saying, “no extensions will be granted”.
Elsewhere, the latest inflation data from China was released overnight, which showed producer prices were down 3.6% year-on-year (compared to an expected 3.2% fall). That’s a 33rd consecutive month of declining prices, and the biggest rate of decline in 23 months.
However, consumer prices unexpectedly rose 0.1%, marking the first inflationary reading since January.
Across the pond on Wall Street, the Dow Jones (^DJI) fell 0.4%, to 44,240.76, the S&P 500 (^GSPC) fell 0.1%, to 6,225.52, edging back for a second day, and tech-heavy Nasdaq (^IXIC) was flat at 20,418.46.
Meanwhile, the US dollar traded close to a two-and-a-half week high while copper hit an all-time peak overnight after Donald Trump broadened his global trade war.
In the bond market, the yield on 10-year US Treasury notes rose to 4.410%, from 4.383% late on Monday.
