Asian stock markets showed a mixed performance on Wednesday, reflecting investor caution as the Trump administration continues its aggressive push for revised trade agreements ahead of looming tariff deadlines.

Japan’s Nikkei 225 edged up 0.2% to 39,764.02, and South Korea’s Kospi rose 0.5% to 3,132.02. Both Tokyo and Seoul are negotiating with Washington to avoid higher tariffs scheduled to take effect on August 1. Analysts say car and steel exports remain key sticking points in the talks.

“Sector-specific exemptions are proving to be the toughest challenge,” noted Stephen Innes of SPI Asset Management. “Japan and Korea are lobbying hard for relief, but the U.S. appears unlikely to offer concessions,” he added.

Chinese markets were mixed, with Hong Kong’s Hang Seng falling 0.7% to 23,970.39, while the Shanghai Composite gained 0.3% to 3,507.69. In other regional markets, Australia’s S&P/ASX 200 lost 0.4% to 8,559.30, and India’s BSE Sensex dipped 0.2% to 83,570.86.

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Oil prices declined, and the U.S. dollar strengthened against both the yen and euro.

Mizuho Bank warned that the looming tariffs are overshadowing deeper concerns over targeted sectoral tariffs designed to isolate China from key global trade networks. “The real risk lies in underestimating China’s potential retaliation, especially if it perceives coordinated actions from the U.S. and its allies,” the bank said.

On Wall Street, the S&P 500 slipped 0.1% Tuesday, following its steepest drop in nearly a month. The Dow fell 0.4%, while the Nasdaq posted a marginal gain, remaining close to record highs.

Source: Agency