Asia stock markets declined on Monday after President Trump confirmed that significant tariffs will start on August 1, not July 9. Treasury Secretary Bessent mentioned tariffs would return to April 2 levels for non-agreement countries. U.S. President Donald Trump announced Sunday that any country aligning with the "anti-American policies" of the BRICS bloc will face an additional 10% tariff. “There will be no exceptions to this policy. Thank you for your attention to this matter!” Gold fell to around $3,310 per ounce on Monday, hitting a one-week low. Japan ( NKY:IND ) fell 0.60% to around 39,690, while the broader Topix Index slipped 0.3% to 2,220 on Monday as weaker-than-expected wage data tempered expectations for further Bank of Japan rate hikes. The Japanese yen weakened toward 145 per dollar on Monday, reversing gains from the previous session. Japan’s foreign reserves increased by S15.6 billion to $1.314 trillion in June 2025, hitting the highest level since July 2022. Nominal wages rose just 1% in May, well below market forecasts of 2.4%, marking a third straight month of deceleration. Real wages, adjusted for inflation, fell 2.9%—the sharpest drop in nearly two years and the fifth consecutive decline. Japan’s index of coincident economic indicators, which reflects trends in factory output, employment, and retail sales, edged down to 115.9 in May 2025 from 116.0 in the previous month. China ( SHCOMP ) fell 0.20% to below 3,470, while the Shenzhen Component fell 0.6% to 10,450 on Monday, as mainland stocks gave back some of last week’s gains amid lingering trade uncertainty, and the offshore yuan slipped to around 7.17 per dollar on Monday, pulling back gains from the previous session, as caution built ahead of the US tariff deadlines. China’s finance ministry announced on Sunday it will restrict government purchases of EU medical devices exceeding CNY 45 million, following the EU’s decision in June to bar Chinese firms from bidding on public tenders for medical devices worth EUR 60 billion annually, citing unfair access for EU companies in China. Attention now turns to upcoming key economic releases, such June CPI and PPI data, after consumer prices fell for the fourth month in May and producer prices saw the steepest drop in nearly two years. Investors also hope for fresh stimulus signals from China’s Politburo meeting this month. Hong Kong ( HSI ) fell 0.41% to 23,804 in early trade Monday, extending losses for the third session amid lingering tariff uncertainty as several countries continue trade talks with the U.S. India ( SENSEX ) fell 0.15% trading around 83,418 in early deals on Monday, following gains in the previous session. Australia ( AS51 ) fell 0.20% to around 8,600 on Monday, halting gains from the previous session. The Australian dollar weakened to below $0.653 on Monday, marking its third consecutive session of losses, as investors braced for the Reserve Bank of Australia’s interest rate decision this week. ANZ-Indeed Australian Job Ads rose 1.8% month-over-month in June 2025, rebounding from a downwardly revised 0.6% fall in the previous month. U.S. stock futures dropped sharply on Monday, despite Trump clarifying that the tariffs would take effect on August 1—not July 9 as previously feared: Dow -0.36% ; S&P 500 -0.48% ; Nasdaq -0.53% . Attention will also turn to the release of the FOMC minutes, as traders look for further clarity on the Fed’s policy direction for the rest of the year. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: U.S.-China trade agreement leads to lifted chip design software restrictions Australia's trade surplus narrows to five-year low in May, missing forecasts amid export dip Australia's manufacturing contraction deepens in May; retail sales miss estimates China's factory activity returns to expansion at 50.4, new orders surge amid better trade Japan's manufacturing PMI revised downward to 50.1 in June; Nikkei index drops as Trump threatens new tariffs
