Global Markets:
- Asian Stock Markets : Nikkei up 0.26%, Shanghai Composite up 0.69%, Hang Seng up 0.74% ASX down 0.26%
- Commodities : Gold at $3344.35 (0.89%), Silver at $37.08 (0.19%), Brent Oil at $69.30 (-0.39%), WTI Oil at $67.58 (-0.3%)
- Rates : US 10-year yield at 4.391, UK 10-year yield at 4.577, Germany 10-year yield at 2.6055
News & Data:
- (GBP) Halifax HPI m/m 0.0% to -0.1% expected
Markets Update:
Asia-Pacific markets were mixed Tuesday as investors reacted to U.S. President Donald Trump’s latest tariff threats targeting 14 trading partners. Starting August 1, exports to the U.S. from countries like Japan, South Korea, Malaysia, Kazakhstan, and Tunisia will face 25% tariffs, according to Trump’s posts on Truth Social.
Higher rates are also expected for others: Indonesia (32%), Bangladesh (35%), Cambodia and Thailand (36%), while imports from Laos and Myanmar will face 40% duties. Economists at Citi Research noted the absence of countries like India, Taiwan, and the Philippines, suggesting potential for future agreements. India and Taiwan may be part of a framework deal, they added, possibly including Israel.
U.S. Treasury Secretary Scott Bessent indicated that around 100 more letters could be sent to smaller economies, with baseline tariffs of 10%. Barclays analysts warned more letters may follow, and if rates are revised significantly, it could impact global growth forecasts. However, the August 1 deadline may leave room for further talks.
In the region, Japan’s Nikkei 225 rose 0.29%, South Korea’s Kospi gained 1.47%, and China’s CSI 300 added 0.74%. Australia’s ASX 200 slipped 0.23% after its central bank held rates steady. Meanwhile, U.S. markets tumbled overnight, with the Dow dropping 422 points and futures sliding in Asian hours.
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