Asian shares are mostly down as Trump’s tariff deadline looms and pressure steps up
MANILA, PHILIPPINES: Asian shares mostly fell on Monday as the Trump administration stepped up pressure on trading partners to quickly make new deals before a Wednesday tariff deadline, with plans for the United States to start sending letters warning countries that higher tariffs could kick in on August 1.
Japan’s Nikkei 225 shed 0.6% to 39,577.66 while Hong Kong’s Hang Seng Index edged down 0.2% to 23,874.18.
South Korea’s KOSPI Index rose 0.3% to 3,064.26 while the Shanghai Composite Index slid 0.1% to 3,473.79. Australia’s S&P ASX 200 fell 0.2% to 8,588.70.
Oil prices also fell after OPEC+ agreed on Saturday to raise production in August by 548,000 barrels per day, accelerating output increases since oil prices jumped, then retreated, in the aftermath of Israel and US attacks on Iran.
US benchmark crude was down 73 cents to $66.27 per barrel. Brent crude, the international standard, shed 78 cents to $68.02 per barrel.
S&P 500 futures were down 0.4% and those for the Dow Jones Industrial Average were 0.3% lower.
“We expect markets to be volatile into the July 9 deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” the Nomura Group wrote in a commentary.
It said the near-term outlook will likely hinge on several key factors such as the extent to which trading partners are included in Trump letters, the rate of tariffs and the effective date of such tariffs. A more distant implementation date might leave scope for some last-minute trade negotiations and maintain market optimism for potential resolutions or extensions, it added.
“With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn’t clear, but the terrain is littered with risk,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
On Thursday, a report showed the US job market performed stronger than Wall Street expected. The S&P 500 rose 0.8% and set an all-time high for the fourth time in five days. The Dow Jones Industrial Average added 344 points, or 0.8%, and the Nasdaq Composite gained 1%.
In other dealings on Monday, the US dollar rose to 145.01 Japanese yen from 144.44 yen. The euro edged lower to $1.1771 from $1.1779.
By RSS/AP
