Asia-Pacific Markets Close Mixed as Investors Weigh Wall Street Rally and Uncertainty Over US Tariff Policy

Asia-Pacific stock markets ended Tuesday on a mixed note as investors assessed strong gains on Wall Street alongside lingering uncertainty surrounding US President Donald Trump’s tariff plans, CNBC reports.

With a 90-day tariff reprieve set to expire next week, markets showed caution despite signs of economic resilience in some parts of the region.

Mainland China’s CSI 300 index rose slightly by 0.17% to 3,942.76 after a better-than-expected Caixin/S&P Global manufacturing PMI reading of 50.4 for June, beating analysts’ expectations of 49. The figure indicated marginal growth in factory activity.

Japan’s Nikkei 225 pulled back 1.24% to 39,986.33 after reaching an 11-month high in the previous session. The broader Topix index also declined by 0.73%, settling at 2,832.07. While Japanese manufacturing posted its first expansion in over a year, new orders and exports remained weak, signaling uneven momentum.

In South Korea, the Kospi rose 0.58% to 3,089.65, while the Kosdaq added 0.28% to close at 783.67. Australia’s S&P/ASX 200 closed nearly flat at 8,451.10, while Indian equity benchmarks—the Nifty 50 and BSE Sensex—were also little changed as of early afternoon trading.

Hong Kong markets remained closed for a public holiday.

US Treasury Secretary Scott Bessent said Monday that some countries were negotiating in good faith to avoid tariff hikes, but warned that duties could return to April 2 levels “if we can’t get across the line.” These statements contributed to a cautious tone in Asian markets, even as Wall Street saw another round of record highs.

On Monday, the S&P 500 gained 0.52% to reach 6,204.95, while the Nasdaq Composite advanced 0.47% to 20,369.73. The Dow Jones Industrial Average climbed 0.63% to close at 44,094.77. US stock futures dipped slightly in Asia trading hours.

In the commodities sector, higher gold prices driven by a weaker US dollar benefited Australian mining stocks. Kingsgate Consolidated surged 6.64%, while Bellevue Gold rose 3.89%. The spot gold price increased 0.77% to $3,328.58 per ounce.

Currency markets also responded to shifting trade dynamics. Most Asia-Pacific currencies appreciated against the US dollar, with notable strength in the Japanese yen and Indian rupee. The US dollar index fell 0.13% to 96.745.

In broader economic data, South Korea’s manufacturing sector remained in contraction for the fifth consecutive month, with a June PMI of 48.7. Meanwhile, Japan’s large manufacturers showed improved sentiment in the Bank of Japan’s Tankan survey, indicating cautious optimism in the country’s industrial sector.