Buckle up, market watchers! Asia-Pacific markets were a lively mix today as investors chewed on President Trump’s big declaration: a trade deal with China is “done!” Trump announced on Truth Social that a framework included China supplying rare earths and magnets, plus continued access for Chinese students to U.S. colleges. The kicker? He claimed the U.S. would maintain a hefty 55% tariff on Chinese imports, while China would impose a lighter 10% on U.S. goods. Commerce Secretary Lutnick confirmed the 55% tariffs are here to stay.
Despite the “done deal” buzz, investors weren’t exactly doing cartwheels. U.S. stock futures actually dipped, and the market’s recent strong run took a breather. Experts pointed to the prospect of those high tariffs sticking around, along with Trump’s side comments on Iran, as reasons for the dampened excitement.
In Asia, the picture was varied: Japan’s Nikkei saw a slight dip, but its broader Topix index, South Korea’s Kospi, and Australia’s S&P/ASX 200 all managed to climb. Hong Kong’s Hang Seng futures, however, suggested a softer open.
Adding another layer, U.S. consumer prices in May rose less than expected – a potential bright spot on the inflation front. As the day unfolds, traders will also be eyeing fresh inflation data from the Philippines and Thailand. It’s a dynamic landscape, full of twists and turns!
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