Asia markets mixed amid tariff uncertainty

July 01, 2025 (MLN): Asia-Pacific markets were mixed on Tuesday as investors weighed Wall Street’s record-setting rally against uncertainty over U.S. President Donald Trump’s tariff policies, with his 90-day tariff reprieve due to expire next week.

Mainland China’s CSI 300 index was flat, as investors digested the Caixin/S&P Global manufacturing PMI for June, which came in at 50.4 higher than the 49 expected by analysts polled by Reuters.

In Japan, the Nikkei 225 declined 1% after reaching an over 11-month high in the previous session, while the broader Topix index dropped 0.8%.

South Korea’s Kospi index rose 1.41%, and the small-cap Kosdaq added 0.65%.

Australia’s S&P/ASX 200 remained flat. India’s Nifty 50 gained 0.21%, while the BSE Sensex was unchanged.

Hong Kong markets were closed due to a public holiday, as CNBC reported.

The cautious sentiment in the region follows remarks from U.S. Treasury Secretary Scott Bessent, who stated Monday that “there are countries that are negotiating in good faith.”

However, he warned that tariffs could “spring back” to previously announced levels if talks falter due to “recalcitrant” behavior.

Meanwhile, U.S. stock futures edged lower during Asian trading hours after the S&P 500 and Nasdaq Composite each logged fresh all-time highs on Monday.

The S&P 500 gained 0.52% to close at 6,204.95, and the Nasdaq advanced 0.47% to 20,369.73.

The Dow Jones Industrial Average rose 275.50 points, or 0.63%, to settle at 44,094.77.

Gains on Wall Street followed Canada’s decision to rescind its digital services tax, aimed at easing trade tensions.

The move came after President Trump declared last Friday that the U.S. was “terminating ALL discussions on Trade with Canada.”

The tax, which would have impacted firms like Google, Meta, and Amazon, was set to take effect Monday.

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