Asia markets mixed after Trump declares China deal "done"

June 12, 2025 (MLN): Asia-Pacific markets traded mixed on Thursday as investors reacted to U.S. President Donald Trump’s declaration that a trade deal with China was “done.”

Trump suggested that Chinese imports would face 55% tariffs, a level confirmed by Commerce Secretary Howard Lutnick.

Japan’s benchmark Nikkei 225 fell 0.58%, while the broader Topix declined 0.24%. South Korea’s Kospi rose 0.83%, and the small-cap Kosdaq added 0.79%.

Australia’s S&P/ASX 200 was flat. Hong Kong’s Hang Seng index lost 0.51%, while mainland China’s CSI 300 also remained flat.

India’s Nifty 50 opened slightly higher, gaining 0.11%.

In the U.S., stock futures fell as investors weighed the preliminary U.S.-China trade agreement and fresh inflation data.

S&P 500 futures dropped 0.2%, along with Nasdaq 100 futures, as CNBC reported.

Futures linked to the Dow Jones Industrial Average declined by 72 points, or 0.2%.

The moves came after U.S. consumer prices rose less than expected in May.

The consumer price index increased by 0.1% for the month, below the Dow Jones forecast of 0.2%. Core CPI, which excludes food and energy, also came in softer than expected.

Overnight, major U.S. benchmarks closed lower, taking a pause after a recent run-up, with indexes ending the session near previous closing levels.

In a Truth Social post, Trump stated the deal with China was “done, subject to final approval with President Xi and me.”

As part of the framework, China would supply magnets and “any necessary rare earths,” while the U.S. would allow Chinese students to attend American colleges. Trump emphasized, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”

Ed Yardeni, president of Yardeni Research, noted that the news did not excite stock or bond investors.

“Perhaps, they were unsettled that Trump also said he is less confident that Iran will agree to stop uranium enrichment in a nuclear deal with Washington,” Yardeni wrote.

ANZ economists added that equities pulled back as markets digested the implications of much higher tariffs potentially becoming permanent.

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