Asian markets mostly slipped in early Tuesday trading as investor anxiety grew over President Donald Trump’s latest tariff announcements.
Japan’s Nikkei 225 inched up 0.1% to 39,507.28, while Australia’s S&P/ASX 200 gained 0.4% to 8,602.70. In contrast, South Korea’s Kospi dipped 0.2% and Hong Kong’s Hang Seng dropped 0.1% to 24,172.79. China's Shanghai Composite saw the sharpest fall, losing nearly 0.9% after new data showed slower economic growth in the second quarter amid escalating trade tensions. The economy grew 5.2% annually, slightly down from 5.4% in the previous quarter.
While the region’s exporters remain wary of the impact of new U.S. tariffs, some investors believe Trump may soften his stance before the measures take effect on August 1, leaving room for negotiation.
China’s exports rise 5.8% in June as tariff truce triggers rush of orders
Wall Street was steady on Monday, with the S&P 500, Dow, and Nasdaq all posting modest gains. Meanwhile, anticipation is building ahead of Japan’s upper house election on Sunday, which could reshape the ruling coalition.
Analysts warned that if all proposed tariffs are implemented, they could risk tipping the U.S. economy into recession and raise concerns about national debt levels. Still, many believe the moves are part of Trump’s negotiation tactics.