Asian shares mostly finish higher although worries continue over Trump's
tariffs
[July 15, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Asian shares were mostly higher in Tuesday trading, despite
lingering worries about President Donald Trump’s latest updates to his
tariffs that weighed on investor sentiments.
Japan's benchmark Nikkei 225 rose 0.6% to finish at 39,678.02.
Australia's S&P/ASX 200 added 0.7% to 8,630.30. South Korea's Kospi
edged up 0.4% to 3,215.28. Hong Kong's Hang Seng rose 0.9% to 24,423.87,
while the Shanghai Composite dipped 0.4% to 3,505.00, after the Chinese
government reported that growth slowed in the last quarter as Trump’s
trade war escalated.
Tuesday's data showed the economy expanded at a robust 5.2% annual pace,
compared with 5.4% annual growth in January-March. In quarterly terms,
the world’s second-largest economy expanded by 1.1%, according to
government data.
Despite worries about the damage Trump's tariffs may have on the
region's exporters, speculation continues that he may ultimately back
down on them. They don't take effect until Aug. 1, which leaves time for
more negotiations.
On Wall Street Monday, the S&P 500 edged up by 0.1%, the Dow Jones
Industrial Average added 0.2% and the Nasdaq composite rose 0.3%.
A nationwide election for the upper house of Japan's Parliament, set for
Sunday, also added to the wait-and-see attitude among market players.
Analysts say the ruling pro-business Liberal Democratic Party may face
an uphill battle and will likely need coalition partners, including
possibly new ones, to keep its grip on power.
If Trump were to enact all his proposed tariffs on Aug. 1, they would
raise the risk of a recession. That would not only hurt American
consumers but also raise the pressure on the U.S. government’s debt
level relative to the economy’s size, particularly after Washington
approved big tax cuts that will add to the deficit.
“We therefore believe that the administration is using this latest round
of tariff escalation to maximize its negotiating leverage and that it
will ultimately de-escalate, especially if there is a new bout of
heightened bond and stock market volatility,” according to Ulrike
Hoffmann-Burchardi, global head of equities at UBS Global Wealth
Management.
“As usual, there are many conditions and clauses that can get these
rates reduced,” said Brian Jacobsen, chief economist at Annex Wealth
Management. “That’s probably why the market might not like the tariff
talk, but it’s not panicking about it either.”
For the time being, the uncertainty around tariffs could help keep
markets unsteady. This upcoming week has several potential flashpoints
that could shake things up.
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A currency trader works near a screen showing the Korea Composite
Stock Price Index (KOSPI), top left, and the foreign exchange rate
between U.S. dollar and South Korean won, top center, at the foreign
exchange dealing room of the Hana Bank headquarters in Seoul, South
Korea, Tuesday, July 15, 2025. (AP Photo/Ahn Young-joon)
 The latest reading on inflation
across the U.S. comes Tuesday, with economists expecting it to show
inflation accelerated to 2.6% last month from 2.4% in May.
Companies are also lining up to report how they performed during the
spring. JPMorgan Chase and several other huge banks will report
their latest quarterly results Tuesday, followed by Johnson &
Johnson on Wednesday and PepsiCo on Thursday.
Fastenal, a distributor of industrial and construction supplies,
reported Monday a stronger profit for the latest quarter than
analysts expected. Its stock rose 2.9%, though it also said that
market conditions remain sluggish.
Shares of Kenvue rose 2.3% in shaky trading after the former
division of Johnson & Johnson said CEO Thibaut Mongon is stepping
down. Kenvue, the maker of Listerine and Band-Aid brands, is in the
midst of a strategic review of its options, “including ways to
simplify the company’s portfolio and how it operates,” according to
board chair Larry Merlo.
Some of the biggest moves in financial markets were for crypto,
where bitcoin continues to set records. This upcoming week is Crypto
Week in Washington, where Congress will consider several bills to
“make America the crypto capital of the world.”
In energy trading, benchmark U.S. crude fell 50 cents to $66.48 a
barrel. Brent crude, the international standard, declined 41 cents
to $68.80 a barrel.
In currency trading, the U.S. dollar inched up to 147.73 Japanese
yen from 147.72 yen. The euro cost $1.1677, up from $1.1666.
___
AP Business Writer Stan Choe contributed to this report.
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