Asian shares are mixed as Trump's tariffs deadline looms
[July 02, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — Asian shares were trading mixed on Wednesday
as the July 9 deadline for the U.S. to strike deals with trading
partners or impose higher tariffs looms.
U.S. futures edged higher and oil prices were little changed.
Shares fell in Japan, hit by jitters over a lack of progress in trade
talks with the U.S., but they recovered much of their lost ground,
trading 0.5% lower at 39,790.85.
Stephen Innes, managing partner at SPI Asset Management, pointed to
President Donald Trump’s declaration that there will be no extension of
his tariff pause, which is just a week away from ending.
“The message was blunt: if Tokyo won’t yield, it will pay. Tariffs of
30%, 35% or ‘whatever number we determine’ are now openly back on the
table,” he said. “The negotiating table just became a pressure cooker.”
Hong Kong's Hang Seng advanced 0.8% to 24,271.15 and the Shanghai
Composite index edged 0.1% lower to 3,453.89.
South Korea’s KOSPI fell 0.6% to 3,072.63 after the government reported
that inflation rose in June.
Australia’s S&P ASX 200 climbed 0.8% to 8,605.40. Taiwan's Taiex edged
up 0.1% while the Sensex in India lost 0.2%.
On Tuesday, the S&P 500 dipped 0.1% to 6,198.01 for its first loss in
four days. The Dow Jones Industrial Average rose 0.9% to 44,494.94, and
the Nasdaq composite fell 0.8% to 20,202.89.
Tesla tugged on the market as the relationship between its CEO, Elon
Musk, and President Donald Trump soured even further. Once allies, the
two have clashed recently, and Trump suggested there’s potentially “BIG
MONEY TO BE SAVED” by scrutinizing subsidies, contracts or other
government spending going to Musk’s companies.
Tesla fell 5.3%. It has lost just over a quarter of its value so far
this year, 25.5%, in large part because of Musk’s and Trump’s feud.
Drops for several darlings of the artificial-intelligence frenzy also
weighed on the market. Nvidia’s decline of 3% was the heaviest weight on
the S&P 500.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI) at the foreign exchange dealing room of
the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday,
July 2, 2025. (AP Photo/Ahn Young-joon)
 But more stocks within the index
rose than fell, led by several casino companies. They rallied
following a report showing better-than-expected growth in overall
gaming revenue in Macao, China’s casino hub. Las Vegas Sands gained
8.9%, Wynn Resorts climbed 8.8% and MGM Resorts International rose
7.3%.
Automakers outside of Tesla were also strong, with General Motors up
5.7% and Ford Motor up 4.6%.
The U.S. stock market has made a stunning recovery from its
springtime sell-off of roughly 20%. But challenges still lie ahead
for Wall Street, with one of the largest being the continued threat
of Trump’s tariffs.
Many of Trump’s stiff proposed taxes on imports are currently on
pause, and they’re scheduled to kick into effect in about a week.
Depending on how big they are, they could hurt the economy and
worsen inflation.
Washington is also making progress on proposed cuts to tax rates and
other measures that could send the U.S. government’s debt spiraling
higher, which could raise inflation. That in turn could mean higher
interest rates, which would hurt prices for bonds, stocks and other
investments.
Despite such challenges, strategists at Barclays say they see
signals of euphoria among some investors. The strategists say a
measure that tries to show how much “excess optimism” is in the
market is not far from the peaks seen during the “meme stock” craze
that sent GameStop to market-bending heights or to the dot-com
bubble at the turn of the millennium.
In other dealings early Wednesday, benchmark U.S. crude lost 8 cents
to $65.37 per barrel. Brent crude, the international standard, lost
3 cents to $67.08 per barrel.
The U.S. dollar rose to 143.70 Japanese yen from 143.41 yen. The
euro slid to $1.1787 from $1.1808.
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