Key Points
- Most Asian markets rose after President Trump delayed new tariffs and indicated he was open to further talks.
- Hope for negotiation outweighed the fear of new tariffs, even for countries like Japan and South Korea that were directly targeted.
- Australian stocks fell after the country’s central bank surprised markets by not cutting interest rates.
- South Korea’s stock market was a top performer, boosted by gains in chipmaker SK Hynix.
Most Asian stock markets closed higher on Tuesday as investors focused on the possibility of further trade negotiations with the United States rather than new tariff threats. Comments from President Donald Trump suggested he was still open to striking deals, which helped calm market nerves.
The positive mood persisted even as Trump formally outlined plans for new tariffs against major economies, including a 25% tariff on South Korea and Japan, as well as higher rates for Thailand and Indonesia. However, he pushed his deadline to impose them from July 9 to August 1. He later added that he wasn’t “100% firm” on the new date and was open to other proposals.
This delay, along with his softer tone, gave investors hope that the U.S. might avoid a full-blown trade conflict. As a result, stock markets in China and Hong Kong experienced a rise. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.83% and 0.74%, respectively, while Hong Kong’s Hang Seng index rose 0.79%. South Korea’s KOSPI index jumped 1.79%, while Japan’s Nikkei also posted gains. The Korean market got an extra lift from chip giant SK Hynix, which surged after its rival Samsung predicted weaker profits.
Not all markets went up. Malaysia and Indonesia, which were also targeted for tariffs, saw their stocks dip slightly. Australia’s ASX 200 index fell after its central bank made a surprise move. Most traders expected the Reserve Bank of Australia to cut interest rates, but it decided to hold them steady. The bank stated that it wanted to wait for more certainty regarding inflation and noted the unpredictable nature of global trade. The decision caught the market off guard and sent stocks lower.
