Asian stocks indices mixed amid tariff uncertainty

July 30, 2025 (MLN):  Asia-Pacific equity markets saw uneven performance on Wednesday as investors processed the lack of tangible progress in the recent U.S.-China trade discussions held in Sweden, while also eyeing key policy decisions from global central banks.

The negotiations between Washington and Beijing concluded without a breakthrough or a definitive extension to the existing tariff pause.

According to U.S. officials, the plan to delay new tariffs still awaits final approval from President Joe Biden, casting uncertainty over the near-term trade outlook.

Commerce Secretary Howard Lutnick reiterated that the U.S. will move forward with its tariff deadline this Friday for other trading partners, indicating no further delays are expected on that front.

Despite the absence of a deal, Lutnick noted that dialogue with China remains active, albeit on a separate timeline.

Investor sentiment was mixed across regional markets.

The MSCI Asia-Pacific index (excluding Japan) ticked up by 0.3%, with Taiwanese equities leading gains, supported by optimism surrounding local tech earnings.

In contrast, Japan’s Nikkei 225 edged slightly lower by 0.03%, and Hong Kong’s Hang Seng Index declined 0.4% amid lingering trade worries.

Australian shares posted modest gains of 0.7%, supported by resilience in commodity stocks and a stable outlook for domestic interest rates.

Meanwhile, global markets are also bracing for a wave of central bank decisions and corporate earnings. The Federal Reserve is widely expected to keep interest rates steady in its upcoming policy announcement later today.

However, analysts suggest there could be dissent among Fed members favoring a cut, as inflation pressures remain subdued and economic data shows mixed signals.

In the bond market, U.S. Treasury yields continued to slide, with the benchmark 10-year yield falling to 4.328% its lowest since early July.

A robust auction of seven-year notes helped ease investor concerns about softening demand for government debt.

Currency markets were relatively calm. The euro rebounded slightly from recent lows, climbing 0.2% to $1.1564, supported by renewed optimism following a tentative trade agreement between the EU and the U.S.

As global investors digest the implications of policy and trade developments, volatility is expected to persist across equity and bond markets in the days ahead.

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