Asian Markets varied amid trade tensions

July 31, 2025 (MLN): Asian markets showed a varied performance on Thursday as investors weighed a series of major developments, including the Bank of Japan’s decision to keep interest rates unchanged, newly stated U.S. tariffs, weaker Chinese economic data, and strong corporate earnings from the U.S. tech sector.

Market sentiment remained cautious amid a complex global backdrop.

The Bank of Japan left its short-term interest rate unchanged at 0.5% for the fourth straight meeting, aligning with expectations.

 It also raised its inflation outlook, hinting at a possible rate hike later this year. The yen strengthened 0.6% to 148.62 per dollar, while Japan’s Nikkei 225 and Topix rose 0.21% and 0.28%, respectively.

South Korean auto stocks dropped after U.S. President Donald Trump imposed a 15% tariff on imports from the country, including automobiles.

Kia Corp fell 5.25%, and Hyundai Motor slipped 3.48%. The Kospi edged down 0.14%, while the Kosdaq was flat.

The U.S. also announced a 25% tariff on imports from India, with additional penalties expected. Trade negotiations are ongoing, adding to market jitters across Asia.

Chinese and Hong Kong markets opened lower following disappointing July PMI figures.

The Hang Seng Index fell 0.91%, while the CSI 300 remained flat, showing concerns about China’s sluggish recovery.

Australia’s S&P/ASX 200 dropped 0.53%, dragged down by falling copper prices and weak demand from China, a key trading partner.

Strong earnings from Microsoft and Meta drove Nasdaq futures up 1.2% and S&P 500

U.S. GDP grew faster than expected in Q2, but underlying data pointed to slowing momentum. The dollar index hovered at 98.812, just below its recent two-month high.

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