Asian Markets Mixed Following Wall Street Rally as Trade Uncertainty Lingers

Asian stock markets were mixed on Friday, paring early gains despite a strong performance on Wall Street that brought US indexes to the brink of new record highs, the Associated Press reports.
US stock futures and oil prices also saw modest gains, while investors continued to monitor global trade developments, particularly a vague new agreement between the United States and China.
The Hang Seng Index in Hong Kong fell 0.3% to 24,250.77, while China’s Shanghai Composite dropped 0.7% to 3,424.23 after official data showed a 9.1% decline in industrial profits in May—its sharpest fall since October 2024. The data signaled persistent economic challenges, even as signs of a thaw in US-China trade relations emerged.
In Japan, the Nikkei 225 rose 1.4% to 40,150.79 following news that consumer prices slightly eased in May. Elsewhere, South Korea’s KOSPI fell 0.8% to 3,055.94, and Australia’s S&P/ASX 200 slipped 0.4% to 8,514.20.
Investors remained cautious after President Donald Trump claimed that a trade deal with China had been signed. US Commerce Secretary Howard Lutnick confirmed the deal during an interview with Bloomberg TV but offered few details, stating only that “the president likes to close these deals himself.”
China’s Commerce Ministry issued a similarly vague statement, saying that both sides had “further confirmed the details of the framework,” but did not confirm any specific concessions such as US access to rare earth exports, a key sticking point in prior negotiations.
“Beijing may have paused the worst of the trade fight with Washington, but the tariff scars are showing,” said Stephen Innes, managing partner at SPI Asset Management. “Unless demand picks up or pricing stabilizes, the pressure on margins and business sentiment will linger.”
On Thursday, US markets rallied, bringing major indexes within striking distance of new records. The S&P 500 gained 0.8% to 6,141.02, briefly topping its all-time high from February before closing just 0.05% shy of that mark. The Dow Jones Industrial Average added 0.9% to 43,386.84, and the Nasdaq Composite rose 1% to 20,167.91.
The gains followed a series of mixed but generally encouraging economic reports. Orders for durable goods, such as appliances, rose more than expected, while jobless claims fell, suggesting fewer layoffs. However, a revised report showed that US GDP contracted more than previously estimated in the first quarter—though economists attributed much of the decline to pre-tariff inventory stockpiling.
Bond yields were volatile but ended the day slightly lower. The 10-year Treasury yield dipped to 4.24% from 4.29%, and the 2-year yield, which is sensitive to interest rate expectations, edged down to 3.71% from 3.74%.
Reports that President Trump may soon name a successor to Federal Reserve Chair Jerome Powell created additional uncertainty in the bond market. Analysts warned the move could erode investor confidence in the Fed’s independence.
In commodities, US crude oil rose 32 cents to $65.56 per barrel, while Brent crude, the global benchmark, added 34 cents to $67.03.
The US dollar strengthened slightly to 144.50 yen from 144.40 yen. The euro edged up to $1.1715 from $1.1703.